Taiwan's Textile Makers Posted Mixed Earning Performances in 9 Months

Jan 24, 2005 Ι Industry In-Focus Ι General Items Ι By Judy, CENS
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Taipei, Oct. 24, 2005 (CENS)--Taiwan's leading textile manufacturers saw mixed earning performances in the first nine months of this year. Among them Makalot Industrial Co. saw its earnings per share (EPS) rise 15% to NT$5.23 (US$0.154 at US$1 =NT$34) and Wisdom Industrial Co. witnessed its EPS skyrocket 460% to NT$0.66 (US$0.019), while Tainan Enterprises Co.'s EPS declined 5% to NT$3.46 (US$0.102) and Honmyue Enterprise Co.'s tumbled 31% to NT$0.83 (US$0.024).

Makalot is one of a few garment makers on the island that still witnessed upward trend in profits after the cancellation of global textile quota effective this year. Due to a traditional hot season for the third quarter, the company raked in NT$108 million (US$3.18 million) in pretax profits in September. And, in the first nine months, its pretax profits accumulated to NT$640 million (US$18.82 million), up 15% from the corresponding figure of NT$558 million (US$16.41 million) recorded a year earlier, with EPS of NT$5.23 (US$0.154) based on capitalization of NT$1.22 billion (US$35.88 million).

Makalot estimated that its shipment and revenue in the third quarter might surge 40% and 20%, respectively, from the same quarter of last year. The company attributed the good performance to the successful corporate strategy of streamlining its global production bases and turning out more high-end functional garments. In the first half of the year, Makalot's average net profit margin reached over 15% and its revenue for the full year is expected to break the NT$10 billion (US$294.12 million) mark, for a rise of 18% from NT$8.5 billion (US$250 million) posted a year earlier.

In September, Tainan Enterprises scored NT$52.26 million (US$1.54 million) in pretax profits, a sharp rise of 65% from the same month of last year. However, the company's pretax profits for the first nine months of the year still posted a slight annual drop of 5% to NT$433 million (US$12.74 million) for an EPS of NT$3.46 (US$0.102) based on capitalization of NT$1.25 billion (US$36.77 billion).

Tainan Enterprises is Taiwan's first garment maker engaged in brand business; however, its contract manufacturing has so far still taken a lion's share of about 90% of its total output. Since several years ago, the company has been actively expanding its brand business and its revenue in the fourth quarter, a hot season for brand garments, may greatly boost the company's profits for the year.

Honmyue's pretax profits in September stood at NT$16.48 million (US$484,706), and in the first nine months the profits accumulated to about NT$100 million (US$2.94 million), which, however, still represented a sharp fall of 31% from the corresponding figure of NT$146 million (US$4.29 million) of last year.

Thanks to good performance in its operations in mainland China, Wisdom raked in NT$29.33 million (US$862,647) in pretax profits in September, the highest of its kind since 2004. The company's accumulated profits for the first nine months amounted to NT$59.18 million (US$1.74 million), a whopping growth of 460% from the corresponding NT$10.47 million (US$307,941) recorded a year earlier.
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