Tong Yang Industry Co (東陽實業), which supplies automotive metal sheets and bumpers to global brands, yesterday posted a 45 percent annual decline in pre-tax profit for last month to NT$201 million (US$6.53 million), due to fewer working days and foreign-exchange losses.
Earnings per share fell to NT$0.32, compared with NT$0.6 during the same period last year, data showed.
Fewer working days last month due to the Lunar New Year holiday dragged down the company’s revenues, Tong Yang said in a statement.
Tong Yang also attributed last month’s decline in pre-tax profit to a NT$72.88 million foreign-exchange loss, as the New Taiwan dollar rose against the greenback.
The autoparts maker posted revenue of NT$1.93 billion last month, representing a 9.83 percent decline from the same period last year, a filing with the Taiwan Stock Exchange showed.
Despite the weak performance, the company said that it is upbeat about its sales outlook for the first quarter of this year, given the strong seasonal demand.
To improve profitability, Tong Yang plans to develop more customized high-margin products for global customers, such as bumper grilles.
Ongoing capacity expansion in Taiwan-based plants would also help increase profitability, the company said.
Tong Yang said it started trial production at a new production line for making electronic plating several days ago.
The production line is expected to produce 480,000 units per year, the company said.
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