Taiwan's Machine-tool Makers Post Outstanding Sales in May

Taipei, June 17, 2011 (CENS)--Despite varying demand from China's automotive and electronics industries, Taiwan's leading manufacturers of machine tools and components, including Tongtai Machine & Tool Co., Awea Mechantronic Corp. and Hiwin Technologies Corp., still posted outstanding sales in May.

Increasing capacity enabled Hiwin, Taiwan's leading manufacturer of linear-lotion devices, to posted NT$1.21 billion and NT$5.156 billion in sales in May and the first five months respectively, both all-time highs.

Acquiring 343 vertical machining centers to make tablet computer base plates enabled Tongtai to post May sales of NT$764 million, up 95.88% year-on-year for a historic high. Institutional investors predict Tongtai will ship 60 machining centers per month from June to September, with monthly sales of NT$700 million and NT$800 million.

Awea scored NT$352 million in May sales, up 73.87% year-on-year for an all-time high, with NT$1.133 billion in registered sales in the first five months, up 29.67% from a year earlier.

Tongtai vice president T.T. Hsieh says China's carmakers are cutting inventories due to slower sales since the beginning of the second quarter, leading to dropping demand for machine tools, which is offset by robust demand from the electronics industry.

Hiwin attributes high May sales growth to sales of robotic arms, which accounted for 6.7% of total sales in May, up 303% year-on-year, and has raised quotations for April, the effects of which will emerge in the second half.

Sales by Taiwan's Leading Machine-tool Makers
Firm	May Sales (NT$100 million)	Annual Growth (%)	First-five-month Sales (NT$100 million)	Annual Growth (%)
Tongtai	7.64	40.92	26.65	26.1
Awea	3.52	73.87	11.33	29.67
Hiwin	12.1	95.88	51.56	93.13
Source: respective firms