Sat, Jul 13, 2019 - Page 12 News List

Iron Force reports record sales, shares Poland plans

By Kwan Shin-han  /  Staff reporter

Iron Force Industrial Co Ltd (劍麟), which makes seat belts, airbag inflators and safety parts, reported record sales for the first half of the year, and expects its new plant in Poland to begin operations later this year.

Sales for the second quarter climbed 8.72 percent annually to a record NT$1.15 billion (US$37 million), helping revenue to grow 8.42 percent year-on-year to NT$2.24 billion in the first six months, thanks to increasing orders and penetration rates of safety vehicle parts, it said in a news release on Wednesday.

Revenue for last month declined 15.3 percent monthly due to product price adjustments, but increased 3.02 percent year-on-year to NT$346.98 million, it said.

“Construction of the company’s new factory in Poland is expected to be completed in November at the earliest, and it will begin to contribute to sales later this year,” a public relations official said by telephone yesterday, adding that Iron Force has received a NT$200 million order for seat belts to be made at the plant.

Although average wages in Poland are higher than in Asia, the plant is close to a client’s research center, enabling Iron Force to meet demand more efficiently, he said.

As Iron Force’s safety parts gain market share and demand for new products improves, sales are expected to rise in the second half, analysts said.

In related developments, leading automotive lighting module maker Laster Tech Co Ltd (麗清科技) on Wednesday reported that revenue for the second quarter increased 2.76 percent year-on-year to NT$1.05 billion, while cumulative revenue in the first six months dropped 2.25 percent year-on-year to NT$2.04 billion.

“Despite fewer working days in the second quarter, the penetration rate of LED products rose as our major clients built up inventory,” the company said in a news release, adding that it began mass production of new joint venture vehicles last quarter, which supported sales.

Sales for last month fell 20.03 percent annually and 15.06 percent monthly to NT$300.11 million due to a high comparison base last year.

The company said it is “cautiously optimistic” about this quarter due to it being the low season for the automobile industry.

Sales of LED products are on a positive track as shipments of alternative-fuel vehicles have risen significantly in the Chinese market, Laster Tech said, adding that its new plant in Shanghai, with double capacity, is expected to be completed this quarter.

Iron Force shares yesterday closed up 0.11 percent at NT$90.7 in Taipei trading. They have risen 17.18 percent so far this year.

Laster Tech shares closed up 0.73 percent at NT$34.5.

This story has been viewed 1469 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top