Pneumatic components supplier Airtac International Group (亞德客) yesterday reported that its first-quarter net income slumped 22 percent to NT$685.97 million (US$22.2 million), from NT$878.6 million a year earlier, as US-China trade tensions took a toll on the company.
Airtac counts China, which generated 92 percent of its sales last year, as its largest market.
The trade dispute has caused clients to place orders more conservatively, resulting in poorer sales and earnings since the third quarter of last year, Airtac spokesman Ivan Tsao (曹永祥) told the Taipei Times by telephone.
The company is still expecting a 10 percent annual growth in revenue this year on the expectation that Washington and Beijing can reach a deal, Tsao said.
Airtac also expects a curbing in price competition with rivals and an increasing contribution from linear guideways in the second half of this year, Tsao added.
Airtac has no plans to boost sales by following the price cuts that Japan-based SMC Corp began in the fourth quarter of last year, he said.
“We are still confident in the long run, because automation is still a trend in China,” Tsao said. “There is great potential in the Chinese market and we will continue to diversify our product portfolio.”
Pneumatic components for electronic equipment contributed 29 percent of Airtac’s revenue last year, followed by components for general machinery at 12 percent, packaging machines at 8 percent, automobile products at 7 percent, batteries at 6 percent and tools for machines at 4 percent, company data showed.
Earnings per share dropped 21.94 percent to NT$3.63 last quarter, compared with NT$4.65 a year earlier.
Gross margin reached 45.81 percent, down from 50.08 percent, while revenue decreased 6 percent year-on-year to NT$3.38 billion.
Airtac shares closed down 5.26 percent at NT$414 in Taipei trading yesterday.
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