Taiwan's Leading Machine-Tool Makers Vow to Increase Their 2014 Sales

Taiwan's leading machine-tool makers vow to increase their 2014 sales by at least 10% from 2013 based on the recent surge in orders that will keep  production lines running at full throttle throughout the second quarter.

Falcon Machine Tools Co., Ltd., with the Chevalier brand, plans to boost sales revenue for 2014 by at least 10% from last year given increased orders from North America since the second half of 2013, profitable December sales, and NT$400 million (US$13.3 million) of backlogged orders.

Last year, the company had consolidated revenue of NT$2.2 billion (US$76.6 million), decreasing 12.32% from the previous year, albeit with consolidated revenue for last December up 101.35% from the same month of 2012, to NT$337 million (US$11.2 million).

Without offering forecast figures, Shieh Yih Machinery Industry Co., Ltd. executives feel the company's 2014 sales will be “much better” than in 2013. Last year, the company's consolidated revenue of NT$4.08 billion (US$136.2 million) represented a 19.08% increase from a year earlier, with December  consolidated revenue of NT$417 million (US$13.9 million), spiking 52.74% from the same month of 2012.

Shieh Yih executives ascribe the hefty growth mostly to the company's migration to car-making machines to cope with decreased orders from 3C (consumer electronics, computer, and communications) makers. Carmakers in North America, China and Southeast Asia placed increased orders with the company at the end of last year.

Tongtai Machine & Tool Co., Ltd. executives point out that the company's revenue for 2014 will increase at least 10% from 2013, inspiring industry executives to project the company's consolidated revenue at NT$8.5 billion (US$283.3 million). They base the bright growth forecast on recovering business cycle, the company's NT$2 billion-plus (US$66.6 million-plus) of undelivered orders, and the company's plan to tap the Russian market for automobile-making machine tools in 2014.

The Goodway Group Chairman D.H. Yang vows that the group's Goodway Machine Corp. and Awea Mechantronic Co., Ltd. will each target revenue for 2014 at 2012 levels, which were NT$2.8 billion (US$93.6 million) for Goodway and NT$3.3 billion (US$112 million) for Awea. The group sets its consolidated revenue target for 2014 at NT$7 billion (US$233.3 million).

Awea executives point out that the company's NT$340 million (US$11.3 million) of new orders received in December 2013 for CNC machines and small- and medium double-column machining centers mostly came from the United States, Europe, China. After December deliveries, the company still has NT$1.1 billion (US$36.6 million) of backlogged orders and has begun taking orders set for the second quarter.

Goodway executives point out that the company landed NT$200 million-plus (US$6.6 million-plus) of new orders in December alone and still has NT$700 million (US$23.3 million) of backlogged orders after December.

Kao Fong Machinery Co., Ltd. plans to increase revenue for 2014 by at least 20% from 2013 level, to around NT$2.3-2.4 billion (US$76.6-80 million). The company's shipments for 2013 topped NT$2 billion (US$66.6 million), with  NT$450 million (US$15 million) of backlogged orders and has begun taking orders to fill second-quarter capacity. (KL)

2013 Consolidated Revenue at Shieh Yih and Falcon

Sources: the companies