Auto Parts Maker TYG's Pre-tax Sept. Profits Slump 55% MoM

Taipei, Oct. 18, 2012 (CENS)--Influenced by forex exchange loss and ripple effect of the Diaoyutai islet dispute recently, the auto-parts maker in Taiwan, Tong Yang Group (TYG), saw pre-tax profits in September total NT$ 53 million (US$ 1.76 million), down almost 55% from August.

Due mainly to forex exchange loss of NT$ 42 million (US$ 1.4 million) and impact of on investments in China from the Diaoyutai issue, TYG announced revenues of NT$ 1.06 billion (US$ 35.33 million) in September, down 5.86% month on month (MoM) but up 0.8% year on year (YoY), with first-nine-month revenues of NT$ 9.568 billion (US$ 318.93 million), increasing 1.4% YoY from NT$ 9.438 billion (US$ 314.6 million), and pre-tax profit of NT$ 819 million (US$ 27.3 million), with earning per share (EPS) of NT$ 1.43 (US$ 0.0476).

Despite flat performance in September and with the traditional peak season starting from October, aftermarket parts clients in the United States and the Europe will likely increase orders gradually, for which TYG is ready with expanded capacity.

Positive towards operations in the fourth quarter, Y. X. Wu, president of TYG, says the goals are to increase AM market share, product certificates in the U.S. and Europe, raise R&D investment to develop more new products, and purchase more replacement auto-parts to lower inventory.