Late Snow in N.A. Saps Taiwanese AM Auto-Parts Makers' Revenue

Taipei, Nov. 17, 2010 (CENS)--The late snow season in North America is impacting demand for collision replacement parts as bumpers, hoods, door panels, auto lamps, radiators etc., resulting in lackluster revenues for Taiwanese aftermarket (AM) auto-parts suppliers.

Tong Yang Industrial Co., Ltd., the largest maker of AM auto body-parts and a major original equipment (OE) supplier to many automakers in Taiwan and mainland China, reported a 3.7% month-on-month (MoM) increase in October revenue.

Industry sources said that North America is the largest AM auto-parts market in the world. Demand peak from the region typically start in October and continues into the end of the first quarter next year, but late snows have delayed clear demand growth.

Tong Yang registered October revenue of about NT$1.1 billion (US$35.1 million), a 42% year-on-year (YoY) increase but only a 3.7% MoM growth. The company, which just merged affiliated Taiwan Kai Yih Industrial Co., Ltd., a major AM sheet-metal body-parts maker, had accumulated revenue of NT$8.4 billion (US$270.8 million) in the first 10 months, up 23% YoY.

TYC Brothers Industrial Co., Ltd., a major auto-lamp exporter, registered October revenue of NT$770 million (US$24.8 million), up 8.04% YoY and 9.8% MoM. However, the company's accumulated revenue in the first 10 months totaled NT$6.85 billion (US$221 million), up 3.56% YoY only.

Ta Yih Industrial Co., the largest OE auto-lamp supplier to local automakers in Taiwan, registered revenue of NT$307 million (US$9.9 million) in October, down 9.45% YoY and a minor decline from NT$318 million (US$10.3 million) in September. In the first 10 months, Ta Yih had accumulated revenue of NT$3.17 billion (US$10.2 million), up 31.1% YoY.