Tue, Oct 11, 2016 - Page 12 News List

Laster Tech sees September sales increase by 83%

BOOMING INDUSTRY:Iron Force also reported a rise in its September sales, as auto parts suppliers continue to see growing demand from their customers in China

By Kuo Chia-erh  /  Staff reporter

Laster Tech Corp Ltd (麗清科技), the nation’s leading auto parts supplier, reported a significant annual increase in revenue for last month, backed by robust demand in China.

Laster posted consolidated sales of NT$400 million (US$12.71 million) for last month, soaring 83 percent from the same period last year, the company said in a filing with the Taiwan Stock Exchange.

In the third quarter, total revenue jumped 42 percent to NT$856 million from the same period last year, the largest annual growth in quarterly revenue in the company’s history, company data showed.

From January to last month, Laster saw its sales increase 21 percent to NT$2.36 billion on a yearly basis, the data showed.

The company attributed the growth to the launches of automotive LED lightning products and rising demand of its Chinese customers, such as Great Wall Motor Co (長城汽車), the largest sport utility vehicle brand in China.

Despite the third quarter usually being a low season for auto parts suppliers, Laster’s revenue grew significantly on the back of rising LED lighting penetration in China, according to the company’s statement released on Friday last week.

The company gave an optimistic sales outlook for this quarter, as it sees further business opportunities in global automotive LED lightning market.

Laster said that its major customers have been working on the research and development of more energy-efficient car components, including LED daytime running lights, which are expected to stimulate the company’s sales.

The booming China car market is also seen as a catalyst for revenue growth, Laster said in the statement.

In the first eight months of this year, new car sales in China grew 11.4 percent to 16,575,000 units from the same period last year, according to the latest data compiled by the China Association of Automobile Manufacturers.

Meanwhile, Iron Force Industrial Co Ltd (劍麟), which distributes car safety components to global customers, also reported an increase in sales last month.

The company reported revenue of NT$373 million for last month, up by 0.35 percent from a year earlier. Its combined sales last quarter grew 3.27 percent annually to NT$1.14 billion.

Iron Force said it sees growing demand for its key products, including airbag inflators and seatbelts, as people are more aware of safety issues when buying cars.

The company said that it expects demand for vehicle safety components will continue to grow in China, as this quarter is the traditional peak season for Chinese car manufacturers.

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