Wed, Aug 10, 2016 - Page 12 News List

Global PMX benefits from growing demand for cars

By Kuo Chia-erh  /  Staff reporter

Global PMX Co Ltd (智伸科), a supplier of precision machinery processing services, yesterday reported sales of NT$285 million (US$9.06 million) for last month, a 17.33 percent increase from the same period last year, supported by increasing global demand for cars.

In the first seven months of this year, the company’s combined sales jumped 14.4 percent to NT$2.01 billion from the same period last year, company data showed.

Based in New Taipei City, Global PMX provides precision machinery components processing services for car, semiconductor and medical equipment companies.

The company attributed the remarkable growth to rising demand from its automaker clients.

High contribution from automotive equipment sales might continue to drive revenue in all sectors, the company said.

Automotive component revenue accounts for more than 60 percent of the company’s total sales, followed by electronics components at about 20 percent, company data showed.

Automakers have increasingly begun to install safety systems in new vehicles, driving sales of car components last month, Global PMX said.

The firm holds a positive outlook for its sales in the second half of this year, as global demand for cars might remain strong.

New car sales in major markets such as China, North America and Europe are expected to grow steadily this year, according to market research by global automotive components maker Continental AG.

Safety systems are regarded as essential equipment in new cars, benefiting manufacturers of related components, the firm said, adding that Taiwan, China, the US and the EU require automakers to install electronic stability control systems in new vehicles.

The installation rate of electronic stability control systems in China was 19 percent in 2014, but rose to 53 percent in the first half of this year, company data showed.

Global PMX next plans to focus on anti-lock brake system and dual-clutch transmission components, the firm said.

Global PMX has partnerships with automotive parts suppliers worldwide, helping them in design and authentication initiatives. The company’s key clients include Continental, Robert Bosch GmbH and BorgWarner Inc.

Last year, Global PMX’s net profit fell 8.8 percent year-on-year to NT$292 million, or earnings per share of NT$3.74, as appreciation of the New Taiwan dollar weakened profits, the company said.

Combined revenue totaled NT$3.07 billion last year, a 9.71 percent annual increase, company data showed.

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