Machine tool makers rake in the earnings on a softening TWD
By Kathryn Chiu, The China Post
May 26, 2014, 12:07 am TWN
TAIPEI, Taiwan -- Thanks to the depreciation of the Taiwan dollar's forex value and economic traction, the first quarter earnings per share (EPS) of Taiwan's tool machine makers grew by a factor of two from the same period last year.
The United Evening News reported that EPS of Taiwan-listed machine tool makers, including Goodway Machine Corp. (程泰機械), Hiwin Technologies (上銀科技), Kao Fong Machinery Co. (高峰工業), Tongtai Machine & Tool Co. (東台精機) and Taiwan Takisawa Technology Co. (瀧澤科技), more than doubled in the first quarter.
Hiwin the Most Profitable
With an EPS value of NT$2.1, Hiwin Technology is purportedly the No. 1 profit maker among Taiwan's machine tool manufacturers.
Taiwan's machinery exports rose 8.2 percent annually to US$6.46 billion during the period to April, with machine tools exports growing to US$320.49 million in April, up 1.1 percent from the same month last year.
Taiwan's machine tool exports rose slightly in April on strong demand from Germany and Thailand, the Taichung-based Taiwan Machine Tool and Accessory Builders' Association said recently.
Germany saw the sharpest annual increase in shipments at 66.8 percent, meaning exports worth US$11.75 million in April. Thailand also saw strong annual growth of 25.3 percent, followed by the Netherlands at 22.8 percent, the group said.
Exports of machine tools to major trade partner China, however, plummeted 16.5 percent year-on-year to US$101.24 million in April, the biggest decline among all markets.
The drop was attributed to China's slower-than-expected recovery, which the association said dampens the total growth of the global market.
Based on the latest data released by the Taiwan Association of Machinery Industry, Taiwan's machinery exports rose 8.2 percent year-on-year to US$6.46 billion for the first four months of the year as declines in shipments to India, Thailand and China were balanced out by increases in the U.S. and Europe.
Shipments to China Drop 1%
Outbound shipments to China, the sector's largest export destination, dropped 1 percent year-on-year to US$1.64 billion in the first four months and accounted for 25.4 percent of overall exports, data showed.