Taiwan's leading golf makers saw good harvest in November

Dec 24, 2003 Ι Industry In-Focus Ι General Items Ι By Judy, CENS
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Taipei, Dec. 24, 2003 (CENS)--Taiwan's leading manufacturers of golf clubs and heads scored good harvest in November. Among them were Advanced International Multitech Co. (AIM), O-TA Precision Industry Co., and Dynamic Precision Casting Mfg. Co., which recorded pretax earnings per share (EPS) of NT$11.9 (US$0.35 at US$1 = NT$34), NT$6.11 (US$0.18), NT$2.11 (US$0.06), respectively, in November.

Although Fu Sheng Industrial Co., the world's largest maker of golf clubs & heads in terms of volume, did not disclose its profits, the firm is estimated to post pretax EPS of NT$7 (US$0.21) in November.

In line with the upcoming of the U.S.-based Professional Golfers' Association (PGA) show, slated to take place on Jan. 29, 2004, the world's brand golf equipment makers are actively preparing to sport their new products at the show. Some of them have already sent orders to their Taiwan suppliers. With these orders, the production lines of Fu Sheng, AIM, O-TA, and Dynamic Precision have been fully booked till the first quarter of next year.

Dynamic Precision has received trial orders from a new client to turn out golf clubs & heads in titanium alloy, and is expected to get official orders next February. If orders keep coming, the company may expand its production capacity in both Taiwan and mainland China next June. Insiders predicted that Dynamic Precision's revenue for this month would reach NT$110 million (US$3.24 million), breaking its monthly revenue of NT$100 million (US$2.94 million) mark for the first time since September of the year.

Orders received by O-TA for the first quarter of next year mainly came from Nike and Bringston. AIM decided to shorten its Chinese New Year holidays so as to punctually deliver the products to the clients. In the first quarter of 2004, the company is estimated to see a minimum revenue growth of 30%.

To meet the rising demand, O-TA has recently moved its front production of blanks for golf clubs & heads to the mainland. The company's monthly output of blanks have ever since been boosted to 400,000 pieces from 200,000 pieces, and its profits have become thicker as a result of lower manufacturing costs.

In the first 11 months of the year, AIM gained pretax profits of NT$844 million (US$24.8 million), with EPS hitting a high of NT$11.9 (US$0.35). The company is optimistic about its revenue performances for this month and next year as well.

With annual production volume of 12 million golf club heads, Fu Sheng is the world's largest maker of the products. To enhance its volume, the company's plant in Vietnam will join production soon after it is completed in the first quarter of 2004. Last month Fu Sheng scored revenue of NT$160 million (US$4.71 million), already over its breakeven point, and the company's revenue is forecast to keep rising for the coming year.
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