Window coverings supplier Nien Made Enterprise Co (億豐工業) on Wednesday reported that net profit for the second quarter of this year was flat from a year earlier.
It said that cross-border operations, delivery time management and freight rates would remain under pressure in the second half of the year due to global container shortages and shipping delays.
The Taichung-based company said the April-to-June period was challenging due to the effects of rising raw material prices, higher shipping costs and unfavorable foreign exchange rates. It said that operations at its Cambodian plants remained largely normal despite the spread of COVID-19.
Photo courtesy of Nien Made Enterprise Co
The company — whose product portfolio includes venetian blinds, shutters and shades — nonetheless said that it is paying close attention to the COVID-19 outbreak in Cambodia, where slower hiring could cause uncertainties affecting its shipments of ready-made window coverings.
Nien Made has production bases in China — in Dongguan and Shandong Province — as well as in Cambodia. The company supplies custom-made products from Chinese plants and ready-made products from Cambodian plants.
The company reported that net profit for last quarter increased 1.49 percent year-on-year to NT$1.22 billion (US$43.9 million), while earnings per share grew slightly to NT$4.18, up from NT$4.12 a year earlier.
Consolidated revenue expanded 23.67 percent to NT$7.42 billion last quarter, thanks to better prices for custom-made products and an improved product mix, the company said.
Gross margin declined to 53.92 percent, compared with 57.95 percent a year earlier, due to rising raw material costs and foreign exchange losses.
Operating margin fell 4.16 percentage points year-on-year to 26.36 percent due to greatly increased shipping costs, it said.
In the first half of the year, net profit increased to NT$2.51 billion from NT$2.02 billion a year earlier, with earnings per share growing by NT$1.65 to NT$8.56. Consolidated revenue expanded 33.3 percent annually to NT$14.21 billion, although gross margin fell 1.04 percentage points to 53.82 percent due to headwinds from cost increases, the company said.
Looking ahead, Nien Made said it would make good use of its newly expanded production lines in Dallas, Texas, and is expanding its Mexican facility to alleviate the impact of a global container shortage.
The company would also raise prices of its custom-made and ready-made window coverings in the second half of the year to partially offset the cost pressure, it said.
Yuanta Securities Investment Consulting Co (元大投顧) said Nien Made’s revenue would increase by 10 percent year-on-year in the second half of the year and maintain the same growth momentum next year, thanks to robust consumption of window coverings amid a strong housing demand in the US.
“Given the strong demand for new and existing homes in the US and consumers shifting focus to home repairs amid the pandemic, US window covering retail sales grew 6 percent year-on-year in the second half of last year, and rose 33 percent in the first half of this year,” Yuanta said on Thursday.
“This is evidence of Nien Made’s steady market-share expansion in the US amid the pandemic,” Yunata said.
“The low US mortgage rate of 2.8 percent to 3 percent, before the US Federal Reserve’s potential interest rate hikes in 2023, is a major housing demand driver,” Yuanta said.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS