Eclat Textile Co (儒鴻) is optimistic about its business outlook this year as it has clear order visibility for the next six months, the garment and fabric supplier said yesterday.
The company said its orders are mostly confirmed for the first half of this year and it has begun to receive new orders for the third quarter.
In addition, the company has seen stronger order growth from mid-sized and high-priced brand clients, it said, adding that the addition of six new customers last year would help contribute about 15 percent to its revenue this year.
Photo: Fang Wei-chieh, Taipei Times
Eclat, which counts global brands such as Nike Inc, Gap Inc, Target Corp, Lululemon Athletica Inc and Under Armour Inc among its top customers, has fabric operations in Taiwan and Vietnam, as well as garment plants in Vietnam, Cambodia, Lesotho, China and Indonesia.
The company said its garment plants have all been running at full capacity, with its outsourced capacity contribution estimated to rise to 30 percent this quarter, from 25 percent last quarter, indicating solid order recovery.
Eclat’s net profit in the fourth quarter last year was NT$1.39 billion (US$44.1 million), up 76.69 percent annually, or earnings per share of NT$5.1.
The increase was buoyed by higher revenue during the October-to-December quarter, which grew 11.3 percent annually to NT$8.49 billion, while gross margin and operating margin improved annually to 32.51 percent and 22.83 percent, respectively, company data showed.
Despite a notable sales recovery and a reversal of declining profit during the final quarter of last year, last year’s overall net profit was still down 23.77 percent annually to NT$5.18 billion and full-year revenue fell 22 percent to NT$30.79 billion due to customers' inventory adjustments.
Earnings per share were NT$18.87 last year, down from NT$24.75 in 2022, but gross margin increased by 3.59 percentage points to 31.44 percent and operating margin rose 1.5 percentage points to 21.28 percent, company data showed.
The increases in margins last year were mainly due to higher factory utilization, better production efficiency, improved product mix and inventories of low-priced raw materials, Eclat vice president for finance and accounting Roger Lo (羅仁傑) said.
Last year, the garment business accounted for 62 percent of the company’s total sales, with the fabric business taking the remaining 38 percent, Eclat vice chairman Richard Wang (王樹文) said.
Looking ahead, Wang said he is not pessimistic about the North American market this year and expects growth momentum to be better than last year, as customers have started to place long-term orders instead of rush orders.
In addition, large brands and channel customers remain active in placing orders, while order momentum from medium-sized brand clients is also quite strong, he said.
The company plans to expand capacity at its Indonesian plants this year and expects new production lines to make a substantial revenue contribution from the second quarter of next year, he added.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
‘FAILED EXPORT CONTROLS’: Jensen Huang said that Washington should maximize the speed of AI diffusion, because not doing so would give competitors an advantage Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) yesterday criticized the US government’s restrictions on exports of artificial intelligence (AI) chips to China, saying that the policy was a failure and would only spur China to accelerate AI development. The export controls gave China the spirit, motivation and government support to accelerate AI development, Huang told reporters at the Computex trade show in Taipei. The competition in China is already intense, given its strong software capabilities, extensive technology ecosystems and work efficiency, he said. “All in all, the export controls were a failure. The facts would suggest it,” he said. “The US
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
French President Emmanuel Macron has expressed gratitude to Hon Hai Precision Industry Co (鴻海精密) for its plan to invest approximately 250 million euros (US$278 million) in a joint venture in France focused on the semiconductor and space industries. On his official X account on Tuesday, Macron thanked Hon Hai, also known globally as Foxconn Technology Group (富士康科技集團), for its investment projects announced at Choose France, a flagship economic summit held on Monday to attract foreign investment. In the post, Macron included a GIF displaying the national flag of the Republic of China (Taiwan), as he did for other foreign investors, including China-based