Auto Parts Maker Tong Yang Sees Revenue Decline in July

Taipei, Aug. 21, 2012 (CENS)--Tong Yang Industrial Co., Ltd., a maker of auto-parts in Taiwan, recently announced pretax earnings for July at NT$77.2 million (US$2.6 million), down 7.8% year-on-year (YoY), and at NT$685 million (US$22.8 million) for the first seven months, down 14.4% YoY and translating into pretax earnings per share (EPS) of NT$1.2 (US$0.04).

Tong Yang is a major maker of aftermarket (AM) plastic body-parts and original equipment (OE) parts supplier to automakers mainly in China and Taiwan.

Many Chinese automakers were forced to halt production due to simmering heat in July, impacting Tong Yang's parts shipments in China. However, demand from the global aftermarket has shown recovery.

Crispin Wu, Tong Yang's president, pointed out that his company plans to invest NT$1 billion (US$33.3 million) in new-product development this year, to upgrade its share in the global aftermarket.

Tong Yang has been trying to increase the number of LKQ- and CAPA-certified products, and steadily raising product comprehensiveness. Self-producing plastic body parts (bumpers, instrument panels etc.), sheet-metal body parts (engine hoods, door panels, fenders etc.), cooling system parts (radiators, condensers etc.), the maker has been expanding outsourcing capability, as well as shortening lead times.

Though the global economy is staggering, Wu said the maker has been aggressively restructuring internally and waiting for recovery to further widen the gap from counterparts.