Tue, Jul 16, 2013 - Page 13 News List

Tong Yang says profit rises amid global recovery

By Camaron Kao  /  Staff reporter

Local auto parts maker Tong Yang Industry Co (東陽實業) reported that pretax profit last month grew 89.72 percent from a year earlier on the back of better economic conditions in Europe and the US.

Its profit before tax also received a boost from higher non-operating income, including currency exchange gains as the New Taiwan dollar weakened against the greenback, a company filing to the Taiwan Stock Exchange showed.

Pretax profit last month was NT$206.89 million (US$6.93 million), up 6.93 percent from NT$193.48 million a month ago. Second-quarter profit totaled NT$521.24 million, up 87.11 percent from NT$278.57 million a year ago and 26.32 percent from NT$412.64 million a quarter ago, the filing showed.

“Our profit growth was due to the economic recovery in the US and Europe last quarter and a lower [comparison] base last year, when better weather conditions affected our aftermarket sales,” company spokesperson Fancy Hsu (許芳華) said by telephone.

Hsu said sales this quarter was likely to be as high as last quarter’s NT$4.9 billion since orders remain high, although the third quarter is usually a slow season because of better weather conditions in the US and Europe.

The pretax profit last quarter was higher than NT$436 million forecast by Yuanta Securities Co (元大證券) in a recent report.

Yuan also forecast that full-year profit could reach NT$1.22 billion, or NT$2.12 per share, up 50.8 percent from NT$811 million, or NT$1.4 per share, last year.

“Tong Yang profit could rise by a compound annual growth rate of 27 percent from this year to 2015 as it expands its portfolio of certified auto parts from the Certified Automotive Parts Association in the US and its OEM [original equipment manufacturing] clients continue growing in China,” a Yuanta Securities analyst, who declined to be named, said by telephone.

Meanwhile, auto lamp maker Depo Auto Parts Industrial Co (帝寶工業) posted revenue of NT$1.11 billion last month, up 13.35 percent from NT$978.9 million a year ago, but down 9.02 percent from NT$1.22 billion a month ago, the company said in a stock exchange filing earlier this month.

In the April-to-June quarter, Depo’s revenue was NT$3.43 billion, up 9.24 percent from NT$3.14 billion a quarter ago and 9.94 percent from NT$3.12 billion a year ago, the filing said.

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