Rechi Sees Net Earnings Hit All-time High in First 3 Quarters

Taipei, Oct. 31, 2011 (CENS)--Rechi Precision Co., Taiwan's leading manufacturers of refrigeration compressors, posted NT$777 million in pretax earnings, or NT$650 million after-tax revenue, in the first three quarters, both historic highs.

Over the past several months, Rechi has been aggressively diversifying product mix, succeeding to acquire orders from home-appliance brands as TCL, Midea, Glee of China and Sharp of Japan, despite the third-quarter low season.

Rechi said its operating profit margin climbed to 14.45% in the sluggish third quarter from the preceding quarter's 14.41%, attributing the increase to efforts to diversify product range over the past several months.

With the company's production equipment utilization rate across the Taiwan Strait reaching over 90%, institutional investors predict Rechi will see monthly sales reach NT$1.2 billion in the fourth quarter. The company's overall sales will challenge NT$16 billion in 2011, leading to per-share net earnings of NT$2.2.

Besides compressors for air conditioners, Rechi has also been successful to develop humidifiers, driers and commercial heaters.

Rechi is expected to sell over 11 million units of compressors this year to set a historic record. To boost capacity, the company will in 2012 set up two production lines, one each in Huizhou, Guangdong province and Qingdao, Shandong province, China to roll out 1.5 million compressors, which will enable the maker's overall output to reach 15 million compressors in 2012.