TTE's Auto-electronics Parts Sales in N. America Up By 277% YoY

Taipei, Oct. 8, 2009 (CENS)--Taiwan-based automotive-electronics maker Tung Thih Electronic Co., Ltd. (TTE) recently claimed that its sales of original equipment (OE) auto parts to North America saw a 277% year-on-year (YoY) increase in the first half, an indicator of the firm's strong potential to gradually expand market share in major markets.

TTE is a major auto-parts suppliers to major automakers worldwide. The company has a very wide range of product lines including parking sensors, car alarms, multi-function rearview mirrors, vehicle charge coupling device (CCD)/ complementary metal-oxide-semiconductor (CMOS) cameras etc. Currently, parking sensors contribute to about 80% of the company's revenue.

In the first eight months, TTE registered accumulated revenue of NT$1.51 billion (US$46.3 million at US$1: NT$32.5), up 30% YoY. The company's August revenue saw a 61.3% YoY increase.

A senior executive of TTE said that the automotive industry always requires highest product safety and reliability and the product certification takes a long time, posting high thresholds to newcomers in automakers' supply chains. He stressed that TTE is the only company in Taiwan being the first-tier supplier to North America GM and Ford as well as Japan Nissan and synchronizes the R&D processes with these automakers. That means, he added, TTE own the prior supply right in the region among similar counterparts.

As parking sensors have become a standard equipment on new cars, TTE said, each new car often uses eight to 12 such sensors. China's market annual growth is much higher than the global average, TTE said, as more than 10 million new cars are expected to be sold this year. In conjunction with the increasing new-car sales in China, TTE's revenue is expected to further increase, the company said. Some institutional investors forecasted that TTE's second-half earnings would grow by 40% over the first half, and the firm's 2009 earnings are expected to double last year's.