TAIPEI, Taiwan (BRAIN)—Taiwan’s bike manufacturers reported modest revenue gains in 2011 in the face of rising raw material and labor costs, currency fluctuations and a global economic downturn.
Giant, the island’s top producer, posted a sales increase of 5.3 percent for the year, growing to NT$ 19 billion ($627.9 million) from NT$ 18.2 billion ($596.2 million) in 2010. The number falls in line with Giant’s predicted 5 to 10 percent growth last year. Giant makes bikes for its own brand, as well as Trek and other customers.
Merida reported slightly higher gains last year with year-end revenue coming in at NT$ 14.4 billion ($477.4 million), 14 percent higher than 2010’s revenue of NT$ 12.7 billion ($418.3 million). That surpasses the 5 percent growth Merida projected for 2011 at the close of 2010. Merida is Taiwan’s second largest frame manufacturer and the primary supplier to Specialized.
Ideal closed 2011 relatively flat with a half-percent decline over 2010. Year-end revenue came in at NT$ 2.88 billion ($95.2 million) nearly on par with 2010’s NT$ 2.9 billion ($95.7 million). Ideal is an investor in and supplier to Advanced Sports Inc., as well as brands like BMC, Eddy Merckx and Cannondale.
Tire maker Kenda closed the year up 14.4 percent with revenue of NT$ 6.1 billion ($203.7 million), up from NT$ 5.4 billion ($178.1 million).
Figures take into account companies’ Taiwan operations only and exclude mainland China. Conversions were made using Dec. 31, 2011 exchange rate of $1=NT$ 30.3.