Thu, May 04, 2017 - Page 12 News List

Goodway posts NT$17.4m Q1 loss as NT dollar surges

OPTIMISM:Sentiment in the global machinery industry has been improving since the fourth quarter of last year, a company spokesperson said, citing better order visibility

By Kuo Chia-erh  /  Staff reporter

Machine tool maker Goodway Machine Corp (程泰機械), which produces computerized numerical control (CNC) machines, yesterday posted net losses of NT$17.4 million (US$578,611) for the first quarter, primarily as a result of foreign-exchange losses.

In the January-to-March period, the company’s net loss per share was NT$0.16, compared with earnings per share of NT$0.49 in the same period last year, a company filing with the Taiwan Stock Exchange showed.

“The [foreign-exchange] losses reached nearly NT$160 million last quarter due to the strength of the New Taiwan dollar against the US dollar,” Goodway spokesperson Elly Chen (陳碧蓮) said by telephone.

In the first three months of the year, the Taichung-headquartered firm’s sales totaled NT$1.59 billion, representing a 17.2 percent increase from the NT$1.35 billion posted in the same period last year, with gross income over the period rising 5.1 percent from NT$362.9 million to NT$381.3 million, the filing showed.

Sentiment in the global machinery industry has been improving since the fourth quarter of last year, Chen said, citing better order visibility.

In addition, China’s fast-growing vehicle market is likely to further stimulate demand for machinery products, she said.

Automotive industry customers contributed about 40 percent of the firm’s total revenue in the first quarter, data showed.

Goodway sells products to tier-one car component suppliers that distribute parts to Ford Motor Co, Toyota Motor Corp and BMW AG.

The company, which sells CNC machines in more than 30 nations, said it has set a sales target of NT$8 billion for this year, compared with NT$5.78 billion last year.

To meet rising customer demand, the company said its new plant in Chiayi’s Dapumei Intelligent Industrial Park (大埔美智慧型工業園區) is to start operations by the end of the year.

The Chiayi facility is expected to manufacture CNC machines for customers in the aerospace and energy industries, with an expected production value of NT$1 billion per year, Goodway said.

Goodway shares dropped 1.29 percent to NT$61.2 in Taipei trading before the earnings announcement, underperforming the TAIEX, which edged up 0.14 percent to 9,955.33 points.

In related news, Awea Mechantronic Co (亞崴), a major Goodway subsidiary that makes bridge-type CNC machines, posted net losses of NT$23.8 billion in the first quarter, also dragged down by volatile foreign-exchange rates.

The company’s net loss per share was NT$0.25, compared with net earnings per share of NT$0.25 in the same period last year, a company filing with the Taiwan Stock Exchange showed.

Awea saw sales surge 28.73 percent from NT$744 million to NT$958 million in the quarter, fueled by improving demand from its Chinese customers.

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