Taiwanese Power Tool Suppliers Have Seen Influx of Contract Orders From The Country

Aided by the recovering realty market along with a tight presidential race in the U.S., Taiwanese power tool suppliers have seen influx of contract orders from the country, hence enjoying strong shipments in May. For example, Chang Type Industrial Co., Ltd., which just scored pretax profits of some NT$24.4 billion, or NT$0.02 per share, for the first quarter of this year, received contract orders worth NT$110 million in May, including over NT$10 million from the U.S. alone. Chang Type’s executives indicated that the global market for electric and pneumatic tools exceeds US$10 billion a year, where low-end models sold are mostly supplied by Chinese suppliers, with middle- and high-end models mainly coming from Taiwan. Thanks to solid market demands worldwide, especially in the U.S., the company expects to receive more contract orders this year than last year to post robust revenue and profits. In the meantime, Chiu Ting Machinery Co., Ltd., a professional supplier of bench top and stationery woodworking machinery, also hails a bullish market for power tools in the U.S. this year, when the presidential election has got under way to somehow spur local market demands. This company, which is noted for contract production for Stanley Black & Decker, a U.S.-based, globally leading brand vendor of tools, has seen orders received on the OEM (original equipment manufacturing) and ODM (original design manufacturing) basis from the U.S. in the first half of the year increase significantly over a year earlier. Hopefully, the company’s first-half sales revenue will surge by over 20% year-on-year. Chiu Ting’s executives noted that the company finished the first quarter with operating incomes of nearly NT$9 million, with a gross profit rate of 9%. Buoyed by the depreciation of the New Taiwan dollar against the greenback, the company projects the gross profit rate to surge to 10% in the second quarter. Coincidentally, Mobiletron Electronics Co., an auto electronics maker diversifying into OBM (original brand manufacturing) of power tools, noted that its contract orders for power tools landed in the first four months of this year increased over 20% yearly compared to a year ago, leading to banner shipment in May. Source: cens