Mon, Oct 28, 2013 - Page 14 News List

Auto parts, power tool maker expects revenue growth

By Camaron Kao  /  Staff reporter

Auto parts maker Mobiletron Electronics Co (車王電子) expects revenue to grow in the second half of this year from NT$1.08 billion (US$37 million) in the first half primarily boosted by new orders for its power tools.

Because of the orders, revenue from power tools is expected to grow 33 percent to NT$400 million this year from last year’s NT$300 million, Mobiletron Electronics spokesperson Aggie Tsai (蔡淑貞) told reporters on Friday.

Earlier this year, the company received orders of NT$100 million from a US customer that would help it post a growth in revenue in the period from June to October, Tsai said.

Sales of power tools accounted for 20 percent of Mobiletron Electronics’ sales last year, while sales of auto parts — mainly ignition modules, rectifiers and voltage regulators — accounted for 72 percent and sales of security systems accounted for 8 percent, the company said.

Tsai said gross margin last quarter would improve from 35.45 percent in the second quarter because its factories have reached economies of scale for manufacturing power tools.

The company expects revenue to lose steam this quarter from last quarter’s NT$622.5 million as durable power tool shipments begin to drop next month.

From January through last month, the company registered revenue of NT$1.7 billion, a growth of 11.22 percent from NT$1.53 billion the previous year, according to the company’s filing to the Taiwan Stock Exchange.

During the January-to-June period, the company’s net profit fell 20.35 percent to NT$75.88 million, from NT$91.32 million the previous year, according to Mobiletron Electronics’ financial statement filed with the stock exchange.

Tsai attributed the decline in net profit to assets the company acquired last year.

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