Hot search: Food  effect  Leaf  payment  Expo  aftermarket  products  Consumer  All-Ways  automotive 
 
Home > News > Market > Content

Taiwan's Two Major Tire Makers Both Achieved Historical-High Consolidated Revenues

increase font size  reduce font Add date: 2016-11-30  Hits:113
Core prompt: Taipei, Nov.15, 2012 (CENS)--Taiwan’s two major tire makers both achieved historical-high consolidated revenues in the first three quar

Taipei, Nov.15, 2012 (CENS)--Taiwan’s two major tire makers both achieved historical-high consolidated revenues in the first three quarters, with Cheng Shin Rubber Co.’s increasing 13% year on year (YoY) to NT$98.8 billion (US$3.29 billion), and Kenda Tires Co.’s growing 10% from a year earlier. Institutional investors predict both firms to also push profits to new three-year highs.

With about 10% YoY decline in natural-rubber price due to oversupply in 2012, 15% YoY price drop in synthetic-rubber due to price crash of “butadiene”, along with stable tire prices, Kenda’s consolidated gross profit margin in the third quarter hit a new high in 2012 at 22.27%, with Cheng Shin’s being 23.39%.

The two firms also witnessed remarkable profits in the third quarter, with Cheng Shin reporting net profits of NT$4.183 billion (US$139.43 billion), up 20% from the previous quarter and 96% year-on-year, with NT$1.48 (US$0.049) in EPS (earnings per share), and NT$3.88 (US$0.129) in EPS from Jan. to Sep.

Kenda saw net profits in the third quarter shoot up 230% YoY to NT$743 million (US$24.77 million), up 36% from a quarter earlier, with NT$1.01 (US$0.033) in EPS, and NT$$2.43 (US$0.081) in EPS in the first three quarters.

Despite low season in the fourth quarter, both firms saw growing revenues in October, with Cheng Shin’s up 8.76% month on month (MoM) to NT$2.234 billion (US$74.47 million), Kenda’s rising 8.8% MoM to NT$500 million (US$16.67 million). However, with less shipment days due to Oct. 1st holiday in China, both firms are predicted to see consolidated revenues drop in October.

With dropping synthetic-rubber price due to significant price decline of raw material butadiene, tire makers in the third quarter saw cost drop 5~10% from a quarter earlier. However, due to the coming low season, the two tire makers in the fourth quarter are expected to maintain similar gross profit margin to the previous quarter.

(by Andrew Wang) 

 
 
[ NewsSearch ]  [ Send Fav ]  [ Share ]  [ Print ]  [ Send Report ]  [ Close ]

 
Total0bar [View All]  Related Comments

 
Photo Recommended
Recommend News
Click Rank
 
Home | Products | Suppliers | News | Tradeshow | Sitemap | Message | RSS Feed