Tong Yang's Consolidated Earnings Rise 40% YoY in Jan.-Feb. 2014

Tong Yang Industrial Co., Ltd. of Taiwan, a major maker of aftermarket (AM) body-parts and also a major Original Equipment (OE) parts supplier to international automakers, recently reported impressive results for operation in the first two months this year.

The company had self-audited, pre-tax consolidated earnings of NT$109 million (US$3.6 million) in February, up 42% from the same period of last year, or year-on-year (YoY). In the first two months, the firm registered cumulative earnings of NT$284 million (US$9.47 million), a 40% YoY increase and translating into earnings per share (EPS) of NT$0.48 (US$0.02).

Crispin Wu, Tong Yang's president, pointed out that stabilizing weather in Europe and the U.S. is leading to favorable business climate in the auto-parts market; while his company has been steadily expanding production capacity of both OE and AM parts to further widen the gap with counterparts.

Sales of AM replacement parts continue to drive revenue growth for Tong Yang, which produces AM parts mainly in Taiwan. The company said that its AM business enjoyed a 56% YoY increase in February according to self-audited pretax earnings, with a 29% YoY growth in the first two months.

Industry sources said that the higher margin growth rate relative to revenue rise at Tong Yang is the key to the company's higher  profitability this year. Tong Yang's capacity expansion plans for its AM product lines are expected to be completed in the second and third quarter, to further boost the company's revenue too.

Tong Yang's Taiwanese OE parts business, including shipments to both local and international automakers, saw a 27% YoY increase in pretax earnings in the first two months, to which the company attributes increased shipments to major customers.

Tong Yang's OE-parts factory in Guanyin, Taoyuan County of northern Taiwan, has been installed with new coating lines and mold/die development workshops, which are expected to further upgrade added values of  products.