Auto-parts Maker Tong Yang's Pre-tax Earnings Up 59% YoY in May

Taipei, June 26, 2012 (CENS)--Thanks to gains from NT-dollar-to-greenback fluctuations, many of Taiwan's auto-parts manufacturers listed on the Taiwan Stock Exchange (TSE) report lucrative results in May.

Tong Yang Industrial Co., Ltd., the largest auto-parts group in Taiwan, had pre-tax earnings of NT$104 million (US$3.5 million) in May, up 59.4% from a year earlier, including NT$27 million (US$900,000) from parity gains.

In the first five months, Tong Yang had cumulative pre-tax earnings of NT$499 million (US$16.6 million), or pre-tax earnings per-share (EPS) of NT$0.87 (US$0.03).

Due to impacts from uncertain business climate in the U.S. and Europe, Crispin Wu, Tong Yang president, said that his company will continue to restructure the firm to further cut costs and upgrade production efficiency, expecting higher market share and margins once demand normalizes.

In the first four months, Tong Yang's reinvested businesses in China reported cumulative revenue of NT$4.3 billion (US$143.6 million), for pre-tax earnings of NT$267 million (US$8.9 million), being optimistic about the Chinese government's new subsidies that should drive new-car sales in the world's largest automobile market.

Tong Yang set up a new subsidiary in Xiangyang, Hubei Province, China early 2012 to produce mainly electro-plated products, with the new facility scheduled to start mass production in September 2013, capitalized at US$8 million with planned annual capacity of some 400,000 to 450,000 units/sets. Tong Yang's new Xiangyang factory is the group's 18th (self-owned or joint-venture) in China, to supply auto parts to Chinese automakers as Dongfeng, GAIG Mitsubishi, and Chengzhou Nissan etc.

Tong Yang's other Chinese joint venture, Changchun Faway Tongyang Automobile Plastics Components Co., Ltd., has won orders from FAW Volkswagen for bumpers and system modules for the Golf A7 and Audi A3 etc. The new venture is scheduled to begin mass production in August 2013 with initial annual capacity of about 300,000 units/sets.

Annual capacity of Tong Yang's subsidiaries and joint ventures in China in 2013 will reach about 5.1 million units/sets.