Taipei,Oct.8,2012(CENS)--While remaining profitable in August and September,most of Taiwana's machine tool makers are worried that continued appreciation of the New Taiwan dollar against the U.S.dollar would erode their profit into the fourth quarter.
Executives of Tongtai Machine&Tool Co.,Ltd.,AWEA Mechantronic Co.,Ltd.,Kao Fong Machinery Co.,Roundtop Machineries Co.,Ltd.and Falcon Machine Tools Co.,Ltd.pointed out that they will become profitless as long as the NT dollar soars past the level of NT$29 for US$1,and will begin seeing loss escalate when the local currency rises above NT$28 against US$1.
They noted that they were still profitable in September,although the NT dollar advanced to NT$29.345 against US$1 in late September,compared with the exchange rate of NT$29.5 they adopted for their exports and quotation in August and September.
Taiwan Takisawa Co.,Ltd.announced it had pre-tax earnings of NT$19.8 million(US$678,327 at US$1:NT$29.3)and its core business had profit of NT$20.5 million(US$702,866)in August alone.In the Jan.-Aug.period,the companya's core business had total earnings of NT$126.4 million(US$4.3 million)and its pretax earnings were NT$134.1 million(US$4.5 million),or NT$1.89 per share.
Taiwan Takisawa executives said the companya's August revenue increased from a month earlier and a year ago,due partly to a 3-10%hike in export quotation set in March last year and partly to tight grip on costs.They said the company suffered tens of thousands of NT dollar in foreign exchange loss in August,with the loss increasing in September as a result of continued appreciation of the NT dollar.
Tongtai executives pointed out that the after suffering around NT$600,000(US$20,477)in foreign exchange loss in August the company might still witnessed further forex loss as the NT dollar continued rising.
Falcon executives noted that although the company had foreign exchange loss in August and September,the loss was not significant.They added that the company had secured tens of millions of U.S.dollar worth of orders at the International Manufacturing Technology Show 2012 in Chicago,held in early September.
Kao Fong executives also said the company forex loss was only minor in August and September.Orders from mainland China,they said,began climbing,to around NT$100 million(US$3.4 million)in September alone.
AWEA executives pointed out that the company might have slight loss in foreign exchange in September after breaking even in the exchange in August.
Roundtop executives pointed out that the company might record foreign exchange loss in the third quarter while having slight loss in the change in August.They said the company has so far secured around NT$400 million(US$13.6 million)worth of orders.
