AWEA, Goodway Report Strong Machine Tool Sales in June Despite Weak Demand in Major Markets

Taipei, July 12, 2012 (CENS)--At a time when many of Taiwan’s machine tool makers are underperforming on weak demands in mainland China, the biggest export destinations for Taiwan’s machine tools, AWEA Mechantronic Co., Ltd. and Goodway Machine Corp. saw their revenue hit new highs in June.

Behind the two companies’ strong June sales was their brisk shipments to Europe and the United States, which together accounted for at least 40% of their total sales last month.

AWEA executives pointed out that the company’s revenue for June reached NT$440 million (US$15 million at US$1:NT$29), spiking 70.48% from the same month last year and hitting a new high. They noted that the company has so far secured NT$1.6-1.7 billion (US$55-58 million) of orders and its order visibility has extended to November.

In the first six months this year, the company had total revenue of NT$1.7 billion (US$60 million), an increase of 25.52% year on year and also a new high.

Goodway executives pointed out that although the company has recently received much fewer orders from mainland China than it did before, orders from Europe and the United States together accounted for over 40% of the NT$800 million (US$27 million) of orders it won last month alone. Also, domestic market contributed part of the June orders.

The company had revenue of NT$322 million (US$11 million) last month alone, increasing 26.57% from the same month of last year. The June revenue helped swell the company’s revenue for the first six months of this year to NT$1.5 billion (US$54 million), surging 42.41% year on year.

Unlike AWEA and Goodway, Tongtai Machine & Tool Co., Ltd. saw its revenue for last month sink 57.05% from the same month of last year, to NT$326 million (US$11 million), its revenue for the Jan.-June period plunge 37.25% from the same period of last year, to NT$2.1 billion (US$74 million).

Shieh Yih Machinery Industry Co., Ltd. had non consolidated June revenue of NT$186 million (US$6.4 million), dwindling 23.77% from the same month of last year, and consolidated June revenue of NT$377 million (US$13 million), losing 14.32% from the same month last year. In the Jan.-June period, the company had non consolidated revenue of NT$1 billion (US$35 million), slipping 16.34% from the same period of last year, and consolidated revenue of NT$1.8 billion (US$63 million), contracting 10.12% year on year.

Shieh Yih executives ascribed the Jan.-June revenue recession mostly to higher comparison basis the company’s sales created in the same period of last year. The company’s second factory in Kunshan in mainland China has recently started volume production of big pressing machines for automobile industry, having won NT$1 billion (US$34 million) of orders.

Kao Fong Machinery Co., Ltd. estimated its revenue for the first half of this year to drop 7-8% from the same period of last year due to economic slowdown in mainland China.