Taiwan's major auto parts makers score handsome revenues

Taipei, Dec. 10, 2003 (CENS)--Several auto parts makers listed on the Taiwan Stock Exchange (TSE) market posted brilliant revenue performance in November.

Gordon Auto Body Parts Co., Ltd., a major supplier of aftermarket sheet-metal body parts, and Hota Industrial Manufacturing Co., Ltd., a leading maker of high-precision gears and transmission parts, reported record high revenues last month. Taiwan Kai Yih Industrial Co., Ltd., a sheet-metal body parts maker, recorded earnings per share (EPS) of NT$4.24 (US$0.12 at US$1: NT$34.1) in the first 11 months this year, the highest among TSE-listed auto parts makers.

Taiwan Kai Yih raked in revenue of NT$318 million (US$9.33 million) in November, edging down 0.93% from the same month last year. The company attributed the slight drop to a delay in cargo shipment. Taiwan Kai Yih, however, registered accumulated revenue of NT$3.56 billion (US$104.4 million) for the first 11 months, up 14% from the same period of last year.

Though suffering a slight revenue drop in November, Taiwan Kai Yih saw its pretax earnings for last month shot up 688.89% from one year earlier to NT$142 million (US$4.16 million). The company claimed that its earnings for November and the first 11 months hit record highs.

With earnings per share (EPS) of NT$4.24 (US$0.12) for the first 11 months, Taiwan Kai Yih outstripped TYC Brothers Industrial Co., Ltd., the No. 1 auto lamp exporter in Taiwan, to become the most profitable TSE-listed auto parts maker. Many institutional investors predicted that the company's EPS could top NT$5 (US$0.15) for the entire year.

According to Taiwan Kai Yih, it has become the largest supplier of sheet-metal body parts in the U.S. aftermarket and has set up production bases in some emerging markets such as Thailand and Europe. In Thailand, Taiwan Kai Yih's plant has begun supplying original equipment (OE) body parts to some international auto brands there, including Isuzu, Ford and Honda, and has turned profitable this year.

Gordon had revenue of NT$130 million (US$3.81 million) for October and expected to score new high revenue in November.

TYC raked in revenue of NT$453 million (US$13.28 million) in November, down 18.4% from the same month of last year. The company attributed the revenue drop to its decreased shipment volume caused by its recent plant relocation in the Southern Taiwan Science Park (STSP).

TYC had accumulated revenue of NT$5.53 billion (US$162.02 million) for the first 11 months, up 78% from last year and quite close to the annual revenue of last year.

TYC said that it has signed a cooperation agreement with Chang-Chun Faw-Sihuan Automobile Co., Ltd. Of mainland China to set up an auto lamp joint venture across the Taiwan Strait and has successfully joined the supply chain with the First Auto Works (FAW) Group, the largest automobile production conglomerate in the mainland. TYC expects its business in mainland China to see booming growth in the near future.