Some Taiwanese Machinery Makers See Higher Profit Rates in Q3 Than Q2

Taipei, Oct. 25, 2012 (CENS)--Shrugging off negative factors, including slowdown in new orders and appreciation of the New Taiwan dollar against greenback, some Taiwanese machinery suppliers reported better gross profit rates for the third quarter of this year than the second quarter, mostly thanks to improved operating efficiency and changing shipment structure for higher profitability.

Among them is Shieh Yih Machinery Industry Co., Ltd., a press manufacturer, who saw its gross profit rate rise to near 22% in the third quarter from between 18% and 20% achieved in the past quarters, partly because of optimizing manufacturing process and cost control, and partly because of increasing shipment of high-profit large-sized presses. Shieh Yih's directors said that the company has contract orders worth NT$1.3 billion on hand for the moment, and hence is optimistic about better operating performance in the fourth quarter.

Awea Mechantronic Co., Ltd., a maker of machining centers, also attained a higher gross profit rate of 23% in the third quarter, up from 22.5% seen in the second quarter, by boosting shipment of double-column machining centers. The company has contract orders valued at NT$1 billion backlogged, with NT$700-800 million of which to be filled in the fourth quarter.

With its efforts on cost control paying off, Kao Fong Machinery Co., Ltd., another machining center maker, finished the third quarter with a gross profit rate of 19%, 2 percentage points higher than the second quarter. Obviously immune to customer inertia, the company has landed new orders worth over NT$1 billion in October alone, including one for 40 small-sized machining centers valued at over NT$50 million from China.

Coincidentally, Fu Chun Shin Machinery Manufacture Co., Ltd., a large-sized supplier of plastic injection molding machines, scored a better gross profit rate in the third quarter than in the second quarter, due mainly to shipment of higher-priced models. Currently, the company has NT$917 million worth of orders unfilled, including NT$675 million in orders to be filled by its plant in Taiwan.