Garment Maker Makalot's Sept. Pretax Profits up 25.6%

Driven by ballooning orders from Japan and the USA, Makalot Industrial Co., a major garment maker in Taiwan, gained in September pretax profits of NT$234 million (US$7.8 million) for a sharp monthly rise of 25.6% or annual growth of 19.7%; and in the first nine months the profits accumulated to NT$1.609 billion (US$53.63 million), up 26.2% with earnings per share (EPS) of NT$9.31 (US$0.31).

A senior executive at the company says this year orders from Japan have jumped 50% and those from the USA by 65%, which have obviously helped with revenue growth in the first nine months, by year-on-year growth of 14.2% to NT$15.519 billion (US$517.3 million).

The executive says that in the first nine months the gross profit rate reached 23.8%, up three percentage points from that of last year and the percentage is very likely to exceed 24% for the full year.

Makalot's shipment this year may amount to 12-12.5 million dozens of garments with average sale price (ASP) estimated to grow 2.2%-2.5% YoY to NT$59.5 (US$1.98) and after-tax profits likely to hit record high of estimated NT$1.7-1.8 billion (US$56.67-60 million) with projected EPS of NT$8-9 (US$0.27-0.3). (JL)