TAICHUNG, Taiwan (BRAIN) — Giant Manufacturing continues to rack up profits as it closed its third quarter thanks to sales in China, where revenue grew 28 percent and the average selling price per unit continued to improve.
Giant has approximately 2,500 exclusive franchise stores in China, dwarfing most of its competitors.
Overall, Giant generated $1.43 billion (NT 42.1 billion) in sales in the first nine months of the year—a 2.4 percent increase compared with the same period last year. Net income before taxes was $121.7 million (NT 3.6 billion). Earnings per share were 24 cents (NT 7.05).
Analysts at Deutsche Bank AG/Hong Kong project Giant will close the year with sales of approximately $1.92 billion (NT 56.8 billion), approximately a 5 percent increase over 2012.
With manufacturing sites in Taiwan and China, the company produced 4.8 million units, including e-bikes, during the first three quarters of the year. Besides strong growth in China, the company said it posted positive growth in Taiwan and Korea, while sales in Japan were soft.
As for the U.S., Giant’s sales in the first half took a hit due to poor spring weather, but its 2014 product launch in the third quarter, particularly its commitment to 27.5-inch mountain bikes, helped boost overall sales through September. “Giant remains positive on U.S. market development,” a press release said.
As for Europe, Giant, like most brands, saw little sales growth as EU member nations (except Germany) continue to struggle with a variety of austerity programs, high unemployment and low projected growth through the remainder of this year and well into 2014.