Footwear Maker Feng Tay to See Peak Season from Late September

Taipei, Sept.19, 2012 (CENS)--Feng Tay Group, a major footwear maker in Taiwan, saw combined revenues in August rise 1.61% year on year (YoY) to NT$3.243 billion (US$108.1 million), totaling NT$24.333 billion (US$811.1 million) in the first eight months, up 9.65% YoY. A corporate representative says customers’ inventory adjustments will result in lower shipments in the third quarter, but not in the upcoming high Christmas season when shipments in the third and fourth quarters are predicted to grow.

A manager of Feng Tay says the firm’s second plant in India has been adding production lines for Converse sneakers and Salomon SAS outdoor trainers. Feng Tay‘s plant in India, starting to make profits from the first quarter, accounted for 9% of the firm’s total shipments in 2011, which will rise with more production lines.

Feng Tay also has plants in China, Vietnam, and Indonesia. The Indonesian plant contributed about 16% to the group’s overall shipments in 2011, albeit with profit loss in the first quarter of this year. However, with improving management efficiency, the plant turned losses to earnings in the second quarter.

Feng Tay produced 5.49 million pairs of shoes in August, up 2.7% month on month (MoM) but decreased 6.5% YoY, totaling 42.56 million pairs in the first eight months, down 6.9% YoY, with sales growing 2.2% MoM but falling 8.8% YoY to 5.27 million pairs in August, down 5.2% YoY to 43.11 million pairs from Jan. to Aug. The company’s combine revenues in August hit the fourth highest on record, due to rising footwear prices.