Garment-maker Makalot Posts US$0.181 in First-Seven-Month EPS

Taipei, Aug. 20, 2012 (CENS)--Makalot Industrial Co., a maker in Taiwan of garments, saw pretax earnings in July reach NT$120 million (US$4 million), increasing 27.43% year on year (YoY) to NT$895 million (US$29.83) in the first seven months, with NT$5.43 (US$0.181) in pretax earnings per share (EPS). An institutional investor pointed out that due to the peak season in the third quarter, and better-than-expected orders, Makalot’s annual profits this year is likely to surpass last year.

The company saw first-seven-month revenues up 8.62% to NT$7.872 billion (US$262.4 million), with NT$895 million (US$29.83) in pretax earnings and NT$5.43 (US$0.181) in pretax EPS. An institutional investor indicated that Makalot shipped 2.31 million dozen garments in the first quarter, 2.11 million dozens in the second quarter, and is likely to exceed 2.5 million dozens in the third quarter due to orders from new customers including OB Design Co., a Taiwan-based fashion brand.

A representative of Makalot said that due to lower prices of raw material and slower consumption, American branded vendors have been cutting product prices, resulting in 5% reduction in average sales price, and volume-dependent strategy this year.

Another key to revenue and profit growths of Makalot is the firm’s decision to shift many of its production lines from China to Indonesia and Cambodia, due to the rising wages in China.