Hiwin Tops Taiwanese Machine Tool Makers in Jan.-Sept. Per-share Earnings

Hiwin Technologies Corp. outperformed all its Taiwanese peers in machine-tool industry earnings for the first three quarters by making NT$6.21 per share, with Q3 earnings of NT$2.91, based upon which industry executives estimate its 2014 earnings at NT$9 per share.

The company, a major maker of ball-bearing screws and linear guideways, ascribes the impressive Q3 earnings mostly to increased consolidated revenue, decreased operating expense, some NT$33 million (US$1.1 million) in forex gains, and untaxed, undistributed earnings.

It raked in Q3 NT$727 million (US$24.2 million) in after-tax net income and NT$903 million (US$30.1 million) in pretax earnings on consolidated revenue of NT$4.2 billion (US$141.3 million), with gross margin rate rising to 38.09% from 37.42% registered in the same period of 2013.

In the first three quarters, Hiwin made NT$1.5 billion (US$50.5 million) in pretax earnings and operating income of NT$2.9 billion (US$98.2 million) on consolidated revenue of NT$10.7 billion (US$359.6 million), with gross margin rate up to 38.95%.

Shipments of industrial robots rising to over 100 systems a month beginning this July has driven its  revenue, according to company executives.

The company’s chairman and chief executive officer (CEO), Eric Chuo, projects its Q4 revenue to exceed that of Q3 due to fully booked capacity.

Having raised salary twice has not compromised the maker's earnings, according to industry executives. (KL)