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Ideal's Taiwan Revenue Rises in July

Published August 18, 2010

TAIPEI, Taiwan (BRAIN)—Revenue from Ideal Bike Corporation’s Taiwan operations rebounded in July after nearly a year on the decline, according to revenue figures released on the Taiwan Stock Exchange.

For the month, the island’s No.3 frame supplier reported revenue of NT$202 million ($6.3 million), up from NT$148 million ($4.6 million) during the same month in 2009, representing an increase of 36 percent.

July’s increase was the first significant jump in revenue Ideal has seen since last September. Ideal is the primary supplier to Advanced Sports Inc.’s brands and a manufacturer for companies like Cannondale, Pacific, BMC and Eddy Merckx.

Still, the increase wasn’t enough to boost year-to-date figures back into the positive. So far in 2010, Ideal’s Taiwan revenue is down 27 percent. Revenue for the year is NT$1.6 billion ($50.4 million), down from NT$2.2 billion ($69.7 million) at the end of July 2009. Late last year, the company predicted flat revenue for 2010 for all its operations. These figures do not account for revenue coming out of Ideal's factories in mainland China and Poland.

Giant, Taiwan’s top manufacturer, reported an 11 percent rise in revenue in July, from NT$1.2 billion ($38.6 million) last year to NT$1.37 billion ($43 million) this year.

Year-to-date, Giant’s revenue is up 13 percent to NT$9.3 billion ($292 million) from NT$8.2 billion ($257 million) at this time last year.

July revenue fell 14 percent for Merida, primary supplier to Specialized, to NT$1 billion ($31.7 million) this year, down from NT$1.18 billion ($37 million) in July 2009. For the year, Merida is up almost 8.6 percent with revenue of NT$6 billion ($189 million), up from NT$5.5 billion ($174.6 million) last year.

That month-over-month decline could be the result of delays in component shipments causing production to fall behind, which would correct itself later this fall, or more bikes being produced earlier than usual this year.

Numbers reflect companies’ Taiwan operations only. Currency conversions use the July 30, 2010 exchange rate of $1=NT$ 31.97.

—Nicole Formosa
nformosa@bicycleretailer.com

Topics associated with this article: Earnings/Financial Reports

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