Rechi Precision to fare well from air compressor price hikes

Taipei, May 14, 2003 (CENS)--Rechi Precision Inc. said yesterday that it would fare well in 2003 with recent price hikes of air compressors in the mainland China market.

In March, the price of Rechi Precision's air compressors raised about 15% in the mainland. The firm conducted another price hike of between 10% and 15% recently.

Executives at Rechi Precision said that the firm's efforts in the labor division across the strait have paid off as its overall production cost was lower than other international counterparts. Following the recent two price hikes, the firm is optimistic that its operations would be promising in 2003, compared with 2002. And its revenue will continue growing until 2004.

Rechi Precision has now obtained air compressor orders up to 3.1 million units for the year. Its gross profit rate is expected to grow significantly due to the recent price hikes.

In April alone, the firm delivered 353,000 air compressors, up 47% from the same month of 2002. In the first four months, its deliveries totaled 1.39 million units, up about 35% from the same period a year earlier.

The firm raked in revenue of NT$350 million, up 34.45% from the same month of 2002. Its revenue totaled NT$1.32 billion, a mere growth of 0.36% from the same period of 2002.

As for the combined revenue from both Taiwan and mainland China plants, the revenue stood at NT$1.65 billion in the first four months, up 25.16% from the same period a year ago, the highest figure in recent years.