Thu, Nov 02, 2017 - Page 12 News List

M.J. International profit falls on forex fluctuations

By Kuo Chia-erh  /  Staff reporter

Vinyl flooring manufacturer M.J. International Co Ltd saw its net profit for last quarter drop 11.95 percent annually, due mainly to foreign exchange rate fluctuations and rising costs of polyvinyl chloride.

The firm posted net profit of NT$120.05 million (US$3.98 million) in the July-to-September quarter, down from NT$136.35 million a year earlier, despite sales climbing 15.02 percent to NT$955.97 million from NT$831.09 million a year earlier.

The figure translated into earnings of NT$1.82 per share, the company said in a statement on Tuesday.

Earnings per share in the period last year were NT$2.32, the company said.

Despite the decline in profit last quarter, M.J. International gave a relatively positive business outlook for the coming year, as the firm’s efforts to increase revenue contribution from its self-owned brands is expected to bear fruit soon.

Incorporated in the Cayman Islands, the firm distributes luxury vinyl floor tiles to customers in more than 30 nations, with a nearly 10 percent global market share.

Revenue generated by the floor maker’s self-owned brands reached more than 10 percent last quarter with help from increasing customer demand in China, M.J. International said.

Chinese customers amounted to about 7.8 percent of the company’s total sales last quarter, up from 5.75 percent in the second quarter of this year, data showed.

M.J. International has teamed up with China Vanke Co (萬科), one of the largest residential real-estate developers in China, as part of its long-term strategy to boost sales in the Chinese market.

The company has also secured orders for its customized flooring products through a strategic alliance with local carpet sellers in China, it said.

M.J. International will begin collaborations with two other Chinese real-estate developers this quarter at the earliest to expand sales channels in China’s major cities and provinces, the firm said, without elaborating.

In light of the firm’s ambitious expansion, revenue contribution by Chinese customers is expected to reach 13 percent next year, the company said.

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