Automotive safety parts maker Iron Force Industrial Co (劍麟) on Friday reported a net profit of NT$502 million (US$16.25 million) for last year, down 8.7 percent year-on-year, with earnings per share falling from NT$7.26 to NT$6.63.
The company attributed the decline to the weakness in new vehicles sales globally and airbag defects at Japan’s Takata Corp, which is one of Iron Force’s major customers.
However, the board of directors still aims to maintain a high payout ratio policy to reward its shareholders and has approved a proposal to distribute a cash dividend of NT$5 per common share, with a payout ratio of 75.4 percent, the company said.
Automotive safety parts account for about 75 percent of Iron Force’s product portfolio in terms of revenue, with major items including airbag inflators, precision metal components for automotive safety systems, high-precision metal tubes for seatbelt retractors and vehicle components for steering systems.
The company also produces store display fixtures and clothes hangers, which make up the remaining 25 percent of its revenue, company data showed.
Iron Force’s consolidated revenue for last year declined 2.4 percent annually to NT$4.22 billion. During the first two months of this year, revenue rose 11.38 percent annually to NT$712.33 million, company data showed.
The company said it remains positive about revenue growth this year given the increase in demand for vehicle safety devices worldwide, and because its shipments of new pedestrian protection devices and shock absorbers are expected to increase from last year.
The global market size of airbag and seatbelt products reached US$53.98 billion in 2017 and is expected to grow at an annual composite growth rate of 13.5 percent through 2026 to US$168.23 billion, Iron Force said, citing the Irish research firm Research And Markets Ltd.
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