Automotive components maker Hota Industrial Manufacturing Co (和大工業) on Wednesday said that sales for the second half of this year would rebound, after six straight months of declines, thanks to an increase in orders from US customers.
The company reported that revenue last month fell 11.2 percent year-on-year to NT$500.94 million (US$16.12 million), with cumulative revenue in the first six months of this year falling 16.42 percent to NT$2.99 billion.
Second-quarter revenue fell 16.54 percent annually, but increased 1.71 percent quarterly to NT$1.51 billion, it said.
“Revenue is expected to show quarterly improvement in the second half of this year on the back of rising orders from major automakers,” Hota said in a news release.
Hota, which focuses on precision drivetrain components, counts US power transmission and engine supplier BorgWarner Inc and electric vehicle maker Tesla Inc among its major clients, analysts said.
To meet growing demand over the next six months, the firm plans to install several carburizing furnaces at its two factories in Chiayi next month, Hota said.
The firm is planning a groundbreaking ceremony this month for a third plant in Chiayi, which will be equipped with automated, smart production lines that are to start operations next year, it said.
Separately, Hiroca Holdings Ltd (廣華控股), a China-focused automobile component supplier, on Tuesday reported that revenue last month fell 12.46 percent year-on-year to NT$588.86 million.
In the first six months, cumulative revenue dropped 12.63 percent to NT$3.53 billion from NT$4.04 billion a year earlier, it said.
“Demand for new cars in the Chinese market slowed due to the US-China trade dispute and fierce competition among car brands,” the company said in a statement.
“Most automakers’ inventories remained high as consumers wait for clearer policies on vehicle registration and emission standards,” it said, adding that quarterly sales would slow due to seasonal effects in the auto industry.
Hiroca said that it has a positive long-term outlook, adding that three major Japanese clients, which contribute about 70 percent of its total sales, are beginning to increase their orders, and orders are expected as cars must comply with China’s new emission standard.
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