Mobiletron to set up global headquarters in Taiwan

Taipei, June 19, 2003 (CENS)--Mobiletron Electronics Co., Ltd. Recently announced that it would start construction on a NT$240 million (US$6.94 million at US$1:NT$34.6) global headquarters in central Taiwan's Taichung in July and complete the project by the second quarter next year.

Mobiletron president Tsai Yu-ching said that the new headquarters would have seven floors and house administration, R&D, key-parts manufacturing, and global technology support centers. Tsai said that his company would apply to the Ministry of Economic Affairs (MOEA) for recognition of its global headquarters next year, which would qualify the company to enjoy preferential incentives from the government.

At a June 16 shareholder meeting Mobiletron decided to distribute a dividend of NT$2.5 (US$0.07) per share, including NT$2 (US$0.06) in cash and NT$0.5 (US$0.01) in stock, for last year. Mobiletron had revenue of NT$753 million (US$21.76 million) in the first five months this year, generating pre-tax profit and earning per share of NT$120 million (US$3.47 million) and NT$1.3 (US$0.04), respectively. The pre-tax earning represented 29% of the company's annual profit goal of NT$4.48 (US$0.13) per share.

Mobiletron recently gave a board seat to the Government of Singapore Investment Corporation (GIC) in order to accelerate its globalization and dilute its image as a family-run enterprise.

According to Tsai, Mobiletron will further upgrade its core competitiveness by integrating its electrical machinery and optoelectronic businesses through reinvested affiliates this year.

Tsai claimed that Mobiletron's automobile electronics business is expected to grow by 30% this year helped by the demonstration of in-car multimedia platform products and booming sales of automobile ignition parts in emerging markets, such as mainland China, India and Iran.

As a result of problems faced by Porter Cable, one of Mobiletron's major buyers of electric hand tools, Tsai said his company would more actively expand its customer base to minimize its exposure to one particular buyer. The president added that Mobiletron's electric hand tool business is also expected to grow modestly.

Mobiletron is beginning to see a pay-off on its investments in mainland China. According to Tsai, Mobiletron expects to generate 35% to 40% of its total revenue this year from mainland operations, and the ratio is expected to reach and possibly surpass 50% next year. The president explained that his company would continue to shift the production of traditional products to mainland China to free up capacity in Taiwan for production of new higher-margin items.