Sat, May 17, 2014 - Page 13 News List

Sumeeko predicts higher revenue on international orders

By Camaron Kao

Sumeeko Industries Co Ltd (世德工業), which makes fasteners for cars, said yesterday that its revenue would rise 30 percent this year annually on the back of strong demand from Japanese, US and European clients.

From January through last month, the company reported a revenue increase of 27 percent to NT$404.78 million (US$13.4 million), from NT$318.73 million a year ago, according to the company’s filing to the Taiwan Stock Exchange.

The revenue growth was because of strong sales of Volkswagen cars around the world and rising orders from Nissan Motor (Thailand) Co, Sumeeko president Alex Chen (陳光裕) said yesterday.

Starting next quarter, the company will distribute parts for car structures to General Motors Co, with the deal expected to increase Sumeeko’s revenue by US$3 million a year, Chen said.

The order is expected to raise Sumeeko’s gross margin to more than 30.42 percent for last quarter, Chen said.

Meanwhile, the company is also in talks with General Motors for another deal worth US$2 million a year to supply parts that help reduce static electricity in cars, Chen said, adding that he expected the deal to be finalized at the end of the year.

Last quarter, the company posted a net profit of NT$59.43 million, or NT$1.75 per share, up 92.89 percent from NT$30.81 million, or NT$1.03 per share, in the same period of last year, according to the company’s filing.

The firm aims to earn NT$7 per share in profit this year, it said.

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