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Revenue Rises at Giant's Taiwan Factory

Published October 21, 2010

TAIPEI, Taiwan (BRAIN)—Giant’s Taiwan factory saw nearly 30 percent growth in September as production levels rebounded from 2009.

Giant, the island’s No. 1 manufacturer, reported September revenue of NT$1.7 billion ($56.4 million) on the Taiwan Stock Exchange. That’s up 28 percent from the same month in 2009 when revenue was NT$ 1.37 billion ($44 million).

The jump is due to increased capacity in the Taiwan factory, which is focused on high-end bikes, compared with a slow September in 2009, said Tony Lo, Giant’s chief executive officer.

“Looking forward, we foresee Giant globally will grow about 10 percent over 2009, in line with our original projection,” Lo said. “2010 is better than 2009, but still not very strong and stable.”

In the first nine months of the year, Giant’s revenue rose 16 percent compared with the same time period last year. Year-to-date, revenue is NT$ 12.7 billion ($409 million) compared with NT$ 10.9 billion ($351.8 million) last year.

Merida, primary supplier to Specialized and Taiwan’s No.2 manufacturer, is also up year-to-date.

Revenue for the first nine months of the year was NT$ 8.5 billion ($274.1 million), almost 8 percent more than last year’s NT$ 7.9 billion ($254 million).

Merida’s September revenue was up just a tick at NT$ 1.3 billion ($42.7 million). That number was NT$ 1.29 billion ($41.4 million) during the same month last year, a difference of 3 percent.

Ideal, the island’s No.3 frame supplier, has seen a steady revenue decline this year, and was down 24.5 percent year-to-date with revenue of NT$ 1.9 billion ($63.1 million) compared with NT$ 2.6 billion ($83.6 million) for the first nine months of 2009. In September, Ideal’s revenue dropped 17 percent from NT$ 272 million ($8.7 million) during the first nine months of 2009 to NT$ 226.5 million ($7.2 million) during the same time period this year.

Note: All conversions use the Sept. 30 exchange rate of $1=NT$ 31.22. Revenue reflects companies’ Taiwan operations only and excludes mainland China.

—Nicole Formosa
nformosa@bicycleretailer.com.

Topics associated with this article: Earnings/Financial Reports

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