Topkey Corp. of Taiwan to Supply Seats for Airbus

Taipei, Sept.20, 2012 (CENS)--Topkey Corp., a Taiwanese maker of carbon fiber composite products, has won orders from EADS (European Aeronautic Defence and Space Company N.V.) to supply seats for Airbus, a major maker of commercial aircraft, boosting Topkey’s combined revenues to NT$10 billion (US$333.33 million) by 2015, said Walter Shen, the chairman.

Shen indicated that Topkey has completed setting up aircraft seating systems, and will invest at least US$60 million within the next three years to build plants and purchase production equipment, as well as invest US$10 million in 2012 to launch the first-phase seat-sales service system, following the seat-assembly service.

A major maker of carbon fiber tennis rackets and composite helmets, Topkey diversified into aerospace, automotive, and 3C composite products in recent years. In 2011, aerospace business accounted for 8% of the firm’s total revenues, which is estimated to grow to 10% in 2012 and 30% in 2015.

Likely to go public in the end of 2013, Topkey owns three plants in Taichung Industrial Park (central Taiwan), Xiamen (Fujian Province, China), and Seattle (U.S), with more than 8,000 employees worldwide.

Last year the firm saw NT$5.88 billion (US$196 million) in combined revenues, with NT$6.18 (US$0.206) in earnings per share (EPS). Benefiting from increasing shipments of aerospace products this year, an institutional investor predicts the firm to see revenues up over 10% year on year (YoY) to NT$6.5 billion (US$216.67 million) in 2012. Topkey’s combined revenues in the first half of this year reached NT$2.825 billion (US$94.17 million), with NT$177 million (US$5.9 million) in pretax earnings, and NT$1.37 (US$0.046) in EPS.

Topkey saw orders for aircraft seats grow significantly in the second half, with annual production expected to grow 60% YoY to 80,000 sets and to exceed 100,000 sets in 2013.