Wed, Sep 18, 2019 - Page 11 News List

Demand in US and EU to carry into Q4: Tong Yang

By Kwan Shin-han  /  Staff reporter

Robust demand from European and US customers for aftermarket products is expected again next quarter as inventories are at a low from a year earlier, said Tong Yang Industry Co (東陽實業), which manufactures bumpers and automotive sheet metal products.

“Our aftermarket business will enter its peak season next month, so we expect the growth trend to continue into the fourth quarter,” a Tong Yang public relations official said by telephone on Monday.

The company’s aftermarket products — including radiator grilles and bumpers — would likely see a single-digit percentage increase in sales this year, said the official, who declined to be named.

The company plans to release new aftermarket products this quarter and next to increase its market share, she said.

Tong Yang’s aftermarket business made up 64 percent of total sales last year, compared with 36 percent contributed by its original equipment manufacturing (OEM) business, company data showed.

The company’s OEM business has shown a double-digit percentage decline in sales so far this year, due to weakness in the Chinese vehicle market, the official said, adding that stimulus measures launched by the Chinese government to boost vehicle sales might help improve its OEM business.

Tong Yang reported that pre-tax profit last month increased 45 percent annually and 10.47 percent monthly to NT$211 million (US$6.81 million), thanks to product portfolio improvements and foreign-exchange gains.

In the first eight months of this year, cumulative profit edged up 0.24 percent year-on-year to NT$1.66 billion, while earnings per share improved from NT$2.76 to NT$2.96, company data showed.

Cumulative revenue fell 9.55 percent year-on-year to NT$14.1 billion in the first eight months, due to the slowdown in the OEM business, the company said.

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