Apparel maker Eclat Textile Co (儒鴻) yesterday reported an increase in net profit of 89.14 percent last quarter from a year ago, thanks to order adjustments and improved capacity utilization.
During the April-to-June period, net profit rose to NT$634 million (US$21 million) from NT$335.2 million a year ago, the company said in a filing to the Taiwan Stock Exchange.
Net profit last quarter was also 7.09 percent higher than the NT$591.96 million the previous quarter, the filing showed.
“We used to have fewer orders in May and June, while orders in July often exceeded our capacity. This year, we negotiated with our clients to adjust the timing of their orders,” chairman and chief executive officer Hung Chen-hai (洪鎮海) said during an investors’ conference.
Last quarter’s results also benefited from an expanding customer base, he said.
Hung forecast that revenue in the second half would post a double-digit increase from NT$7.97 billion the previous year.
Eclat has a production capacity of 5 million units of apparel a month and 2.6 million kilograms of fabric a month, but Hung said it was not enough to meet its clients’ needs.
The company said the addition of a new apparel factory in Cambodia in the fourth quarter would increase its monthly capacity to 8 million units. Two other apparel factories in Vietnam will be operational in the second quarter next year, further increasing its total monthly capacity to 9.5 million units, Hung said.
Eclat shares rose 1.62 percent to NT$251.50 yesterday.