Tong Yang profit climbs as Europe, US spending rises

By Camaron Kao  /  Staff reporter

Fri, Aug 16, 2013 - Page 14

Auto parts maker Tong Yang Industry Co (東陽實業) yesterday said its pretax profit last month rose 12 percent year-on-year to NT$146.28 million (US$4.88 million), as consumers in Europe and the US were more willing to spend amid improving economic conditions.

Pretax earnings from the US and European markets each increased by about 10 percent last month, most of which came from its aftermarket division. However, last month’s profit was still 29.3 percent lower than that in June, when the company booked asset gains, Tong Yang said.

Overall, income from its aftermarket division increased 63 percent year-on-year last month, while that from its original equipment manufacturing (OEM) division grew 2 percent during the same period, the company said.

Tong Yang spokesperson Fancy Hsu (許芳華) said aftermarket sales should remain strong this quarter amid a recovering global economy, but the company’s OEM business is likely to be affected by more holidays in Taiwan and China during the period.

Hsu said China’s major car manufacturers take more breaks during the July-to-September period when temperatures are high, while Taiwanese auto distributors tend to have more holidays during “Ghost Month,” the seventh month in the lunar calendar.

Tong Yang said that earnings per share (EPS) in the first half of the year reached NT$1.26. Yuanta Investment Consulting Co (元大投顧) expects Tong Yang’s EPS to reach NT$2.5 this year and NT$3.1 next year, while SinoPac Securities Investment Service Co (永豐投顧) forecasts NT$2.45 this year and NT$2.81 next year.