Rechi's Sales Simmers in Early 2014 as Overseas Demand for Compressors Surges

With market demand for compressors used in air conditioners buoyant in both the U.S. and China, Rechi Precision Co., Ltd., a Taiwan's leading manufacturer of compressors, has continued to see rosy sales this year.

According to the firm's latest financial statements, its compressor sales totaled 1.2426 million units, mostly going to the U.S. and China, in February, surging 53.75% yearly as the third-highest only next to 1.3024 million units achieved in January, driving consolidated revenue to NT$1.676 billion for a 39.81% annual growth to an all-time high for February.

Overall, the firm's aggregate sales have already reached 2.545 million units in the first two months of this year, soaring 46.41% year on year, with cumulative consolidated revenue of NT$3.33 billion, up 39.81%.

The boom is expected to last throughout the first quarter, as the firm's directors confirmed that orders for compressors so far for March have exceeded one million units, evenly coming from China and the U.S. along with Europe. So the company's shipment in the quarter will likely rise 20% year-on-year to more than 3.5 million units.

Market observers pointed out that the company, with sales goal of 13 million units this year, is very likely to challenge a new high of 13.35 million units in annual shipment in the year, around 10% more than 12.36 million units attained last year, which is realistic as long as global climates, particularly in China, remain stable to sustain market demand for air conditioners.

In the meantime, the joint venture between Rechi and China Steel Corp., Taiwan's largest steelmaker by size, engaged in production of brushless DC motors, has just started up a new production line with annual output of 1.5 million units on a trial basis recently, which is expected to further drive growth for Rechi this year. (SC)