Thu, Jan 12, 2006 - Page 10 News List

Teco expecting to hit six-year high

By Jason Tan  /  STAFF REPORTER

Teco Electric & Machinery Co (東元電機), the nation's largest maker of industrial motors, expects to report record six-year high earnings for last year, after the company conducted a series of restructuring exercises, executives said yesterday.

While the exact figures haven't yet come out, the company's earnings per share (EPS) will stand at around NT$1 (US$0.03), company president Sophia Chiu (邱純技) told reporters at a New Year's media gathering yesterday.

The company reported minus NT$0.21 EPS in 2004.

"The group's performance hit rock bottom in 2004, mainly dragged down by the poor performance of its affiliates. But we delivered better results last year after disposing of non-performing subsidiaries," Chiu said.

Restructuring

The corporate restructuring included the selling of its 9.43 percent stake in Mobitai Communications (東信電訊), she said. Teco established Mobitai in 1996 and began offering mobile phone services in central Taiwan.

Other unprofitable affiliates included Teco Optronics Corp (東元激光), which was established in March 2001.

With a better outlook expected this year, the company, which is also the nation's second-largest maker of home appliances, expects to achieve double-digit growth in sales and better EPS, she added.

Cumulative sales amounted to NT$26.9 billion last year, demonstrating an annual increase of 0.47 percent, according to the company.

"We expect to deliver better performance this year, as we have moved top executives to manage our overseas businesses. This will improve our worldwide operational efficiency as they can solve problems immediately," Chiu said.

In other words, all the top-level executives stationed abroad can now make decisions and do strategic planning on their own, without reporting back to Taipei for further instructions, she explained.

Chiu is the first female president of Teco and was promoted from within last June to carry out the restructuring of the company's affiliates.

Asian expansion

In addition to continued investments in more overseas markets such as Europe, China, Japan, Australia and Southeast Asia, the company will expand into growing markets such as Vietnam and India in the future, company chairman Theodore Huang (黃茂雄) said.

Eyeing the booming economy in Vietnam, the company will move into that market within the next two years with industrial products such as electric motors, he said.

Over the next three years, the company also plans to tap into the Indian market with industrial products, as that nation is busy developing its basic infrastructure, he added.

Teco, which will mark its 50th anniversary on Oct. 21 this year, began with industrial motors, before diversifying into household appliances, information technology products and later telecommunications-related items.

Teco shares were up NT$0.02, or 0.21 percent yesterday, and closed at NT$9.64 on the Taiwan Stock Exchange.

This story has been viewed 2643 times.
TOP top