Mon, Dec 01, 2008 - Page 12 News List

Manufacturing sector reports revenue growth

By Elizabeth Tchii  /  STAFF REPORER

Revenues at domestic manufacturers registered a 0.26 percent increase in the third quarter from the same period last year to NT$3.21 trillion (US$96.24 billion), the Ministry of Economic Affairs said.

Six of the eight major manufacturing sectors saw declining revenues in the July to October period from a year earlier because of the fallout of the global financial crisis, the ministry said in a report on Friday.

The auto and auto parts sector saw the biggest yearly decline in revenues, at 27.85 percent for the quarter, followed by 11.77 percent in the textile sector and 10.73 percent in the computer-related electronics and optical products sector.

“Due to the global financial crisis unfolding in the second half affecting overall consumer sentiment, electronic goods as well as discretionary car purchases were negatively affected,” the ministry said in a statement.

The base metal sector, however, reported an increase of 16.8 percent in revenues in the third quarter amid higher steel prices compared with the same period last year.

The food sector also posted a rise of 13.39 percent in revenues for the quarter on higher raw material costs, the ministry said.

The fourth quarter, typically a period of increased manufacturing sales, is not expected to outperform this year, the ministry said.

“We anticipate further cooling in overseas demand, hence it would not be surprising to see additional declines in export numbers next quarter,” it said.

From January through September, total revenues at domestic manufacturers were NT$9.699 trillion, up 7.47 percent from the same period last year.

Of local manufacturers’ third-quarter revenues, domestic sales accounted for 50.26 percent of the total sales and edged up 2.03 percent year over year to NT$1.61 trillion. Exports held the remainder and dropped 1.47 percent year over year to NT$1.6 trillion, ministry data showed.

Manufacturing sectors, which derived the majority of their revenues from overseas sales, are computer-related electronics and optical products at 86.54 percent, followed by electronic components at 68.53 percent and ready-to-wear clothes and accessories at 60.1 percent.

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