Two of Taiwan’s Sewing Machine Makers See Mixed 1H Results

Taipei, Aug.27, 2012 (CENS)--Affected by volatile global economy, Taiwan’s sewing-machine manufacturers Zeng Hsing Industrial Co. and Kaulin Manufacturing Co. saw mixed performance in revenues and profits in the first half.

Zeng Hsing Industrial Co., maker of low and mid-priced household sewing machines, suffered slightly from economic downturn. Benefiting from early shipments to European and U.S customers in the second quarter, the firm posted NT$249 million (US$8.3 million) in net earnings in the first half, with NT$5.11 (US$0.17) in earnings per share (EPS), both the second highest in history.

Kaulin Manufacturing Co., maker of industrial sewing machines, posted NT$1.047 billion (US$34.9 million) in revenues in the first half, with NT$79.403 million (US$2.65 million) in operating profits, NT$87.815 million (US$2.93 million) in pretax earnings, NT$64.064 million (US$2.14 million) in net profits, and NT$0.33 (US$0.011) in EPS.

Kaulin posted cross-strait combined revenues of NT$1.526 billion (US$50.87 million) in the first half, with NT$90.218 million (US$3.01 million) in combined operating profits, NT$94.699 million (US$3.16 million) in pretax earnings, NT$66.506 million (US$2.22 million) in net profits, and NT$0.33 (US$0.011) in EPS.

A manager of Kaulin said the firm witnessed robust sales of industrial sewing machines in the first half of 2011, with about 30,000 units in monthly output, but has since suffered declining orders due to the EU debt crisis.

Kaulin only produced only 10,000 units monthly in the first half, only half of that in 2011, with utilization rate dropping to less than 50%, as well as breaking even in the second quarter, but a loss per share of NT$0.02 (US$0.00067) due to millions in forex exchange loss, and NT$0.33 (US$0.011) in EPS, a new low since 2010.