With the recent depreciation of the New Taiwan dollar, Goodway Machine Corp (程泰機械) is upbeat about its business outlook for the coming quarters, a company executive said on Thursday.
The sharp appreciation last year of the local currency significantly eroded the profitability of the maker of computerized numerical control (CNC) machines, despite improving industry sentiment, Chinese-language media quoted Goodway president and chairman Edward Yang (楊德華) as telling an investors’ conference in Taipei.
However, Goodway’s revenue and profits for this quarter are expected to surpass last quarter, as the New Taiwan dollar has begun to fall against the US dollar, Yang said.
The company has clear order visibility through the end of this year due to robust demand from the US market, he said.
Taichung-based Goodway swung back into profit last quarter with a net income of NT$59.13 million (US$1.97 million), compared with a net loss of NT$17.37 million during the same period last year, while earnings per share were NT$0.54, compared to losses per share of NT$0.16 a year ago.
The improvement in the bottom line could be partly attributed to the decline in its foreign-exchange losses, which narrowed by more than half to NT$67.07 million from NT$160.91 million a year ago.
Revenue was NT$1.94 billion in the first three months of this year, representing a 22 percent increase from NT$1.59 billion in the same period last year, with gross margin increasing to 24.89 percent from 24.05 percent, data showed.
Revenue from European customers accounted for about 34 percent of total sales last quarter, while Chinese and US clients contributed 30 percent and 19 percent respectively.
Goodway is planning to invest about NT$1 billion in the second phase of its plant in Chiayi’s Dapumei Intelligent Industrial Park (大埔美智慧型工業園區), which began operations at the end of last year.
Executives from Awea Mechantronic Co (亞崴), a listed subsidiary of Goodway that makes C-type and bridge-type CNC machines, gave a similar outlook.
Awea posted a net profit of NT$54.03 million for the last quarter, compared with a net loss of NT$23.79 million the previous year, with sales rising 12.8 percent annually to NT$1.08 billion from NT$957.89 million. First quarter earnings per share were NT$0.56, compared with losses of NT$0.25 a year ago, Awea data showed.
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