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Forex Incomes Boost Earnings of Taiwan's Machine Tool Makers

2014/03/27 | By Ken Liu

Forex exchange incomes boost earnings at Taiwan's leading machine tool makers last year.
Forex exchange incomes boost earnings at Taiwan's leading machine tool makers last year.

Taiwan's machine-tool makers made better-than-expected earnings in 2013 on average mostly due to income from currency exchanges.

Kao Fong Machinery Co., Ltd. saw both revenue and earnings for last year hit fresh historical highs, with after-tax net income of some NT$130 million (US$4.3 million), or NT$1.5 per share, on consolidated revenue of NT$2.04 billion (US$68 million).

Hota Industrial Mfg. Co., Ltd. Chairman David Shen, whose company owns Kao Fong, has set Kao Fong's revenue goal at NT$2.4 billion (US$80 million) for this year and NT$3 billion (US$100 million) for next year.

Although Kao Fong's revenue for the first two months of this year shot up 52.71% year on year, to NT$360 million (US$12 million), and the company still has some NT$400 million (US$13.3 million) of booked orders, Shen still drives executives to work harder.

Goodway Machine Corp. raked in consolidated revenue of NT$5.88 billion (US$196.1 million) and after-tax net income of NT$534 million (US$17.8 million), or NT$4.05 per diluted share, in 2013. The company has decided to pay shareholders NT$2 per share in cash dividend, the highest dividend paid out by Taiwan's machine-tool makers.

Awea Mechantronic Co., Ltd., a subsidiary of Goodway, made NT$236 million (US$7.8 million), or NT$2.57 per share, in after-tax net income on consolidated revenue of NT$2.9 billion (US$99.7 million) last year, with cash dividend to be NT$1.5 per share.

Taiwan Takisawa Co., Ltd. says it had pre-tax net income of NT$357 million (US$11.9 million), or NT$2.92 per share, on consolidated revenue of NT$2.8 billion (US$94.6 million) last year.

Shieh Yih Machinery Co., Ltd. earned NT$1.4 per share.

Thanks to devaluation of the New Taiwan dollar against the U.S. dollar late last year, most of the island's machine-tool makers booked income from such fluctuations ranging from NT$10 million (US$333,333) to NT$50 million (US$1.6 million). (KL)

 2013 Earnings and Dividend of Taiwan's Leading Machine Tool Makers

Stock code & company name

EPS

Dividend

1530 Awea

NT$2.57

NT$1.5 in cash

1583 Goodway

NT$4.05

NT$2 in cash

4510 Kao Fong

NT$1.5

NT$0.6 in cash, NT$0.4 in stock

4533 Shieh Yih

NT$1.4

NT$0.3 in cash

Sources: the companies