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Taiwan's Top Two Up Double Digits in 2010

Published January 18, 2011

TAIPEI, Taiwan (BRAIN)—Taiwan’s top two bike manufacturers ended 2010 up double digits after wrapping up the year with solid growth in December.

Giant Manufacturing, the island’s top producer, finished the year up 17 percent, while Merida reported a year over year increase of 10 percent, according to numbers released on the Taiwan Stock Exchange.

Ideal, which paints and assembles bikes in Taiwan, slipped 17 percent year-to-date even after reporting 25 percent growth in December. Giant was up 10 percent in December and Merida’s revenue climbed 20 percent for the final month of the year.

William Jeng, Merida spokesperson, said the company’s results in 2010 were slightly higher than projected, and were above 2008 numbers by about 3 percent. Growth in Merida’s China factory was 16 percent higher than 2009, he added.

In 2011, the company is forecasting another 5 percent growth. That projection is lower than last year due to anticipated impact from unfavorable exchange rates and rising labor and material costs, Jeng said.

Last year, Merida—the primary supplier of Specialized bikes—reported revenue of NT$ 12.6 billion ($437 million) compared with NT$ 11.5 billion ($394 million) in 2009. For the month of December, the company was up to NT$ 1.6 billion ($55 million) from NT $1.3 billion ($45.6 million) for the same month in 2009.

Giant, OEM supplier for Trek as well as its own brand, ended 2010 with revenue of NT$ 18 billion ($619 million) compared with NT$ 15.3 billion ($526.5 million) the year before. In December, revenue rose from NT$ 1.8 billion ($62.4 million) from NT$ 1.6 billion ($56.7 million) for the same month in 2009.

Ideal, which primarily supplies frames to Advanced Sports Inc. and smaller boutique brands like BMC, fell from NT$ 3.5 billion ($120.7 million) in 2009 to NT$ 2.9 billion ($99.4 million) this year. Despite that final tally, revenue spike 25 percent in December, from NT$ 297.7 million ($10.2 million) in 2009 to NT $373.2 million ($12.7 million) this year.

Note: All conversions use the Dec. 31, 2010 exchange rate of $1=NT$ 29.16. Results factor only companies’ Taiwan operations.

—Nicole Formosa
nformosa@bicycleretailer.com

Topics associated with this article: Earnings/Financial Reports

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