Auto parts maker Tong Yang Industry Co (東陽實業) yesterday reported its profit increased 13 percent last quarter year-on-year on the back of the economic recovery in the US and Europe, and its cost-reduction efforts.
The company, which supplies automotive metal sheets and bumpers to global brands, said pre-tax income was NT$383 million (US$12.82 million), or NT$0.67 per share, from January through last month. The company did not provide a comparative figure for the fourth quarter last year.
Revenue for the first three months hit a record NT$4.62 billion, up 12.56 percent from NT$4.1 billion the previous year.
“We reached economies of scale as our sales grew and our average costs were lower than previously,” Tong Yang spokesperson Fancy Hsu (許芳華) said by telephone.
Furthermore, the company has implemented more automation, which helped cut its personnel costs, Hsu said.
The company’s business is composed of two main parts — after-sales services and original equipment manufacturing services.
Tong Yang said profit generated from its after-sales services division grew 162 percent last quarter year-on-year, thanks to severe weather conditions in both Europe and the US that boosted repairs and after-sales care in those regions.
Profit at the original equipment manufacturing division increased 60 percent year-on-year last quarter on the rising sales of global brands, the company said.
Hsu said the company expects to sustain its growth momentum this quarter on still-strong demand in Europe and the US, as well as rising sales in China.