Taipei, May 3 (CNA) Profits at Hiwin Technologies Corp., one of Taiwan’s leading machine tool makers, rose sharply from a year earlier thanks to strong global demand, the company said Saturday.
In the January-March period, Hiwin posted NT$534 million (US$17.68 million) in net profit, soaring from the NT$199 million recorded a year earlier. Its earnings per share for the first quarter stood at NT$2.1, jumping from last year’s NT$0.78.
In the three month period, the company’s consolidated sales rose 26.9 percent year-on-year to NT$3.01 billion, while its gross margin rose to 39.80 percent from 34.95 percent seen over the same period of last year.
Hiwin said demand for the second quarter is expected to remain solid and could increase further in the second half of the year not only on domestic demand and but also on demand from Europe, the United States and Japan.
According to an estimate made by the Taiwan Machine Tool and Accessory Builders’ Association, Taiwan’s machine tool exports for 2014 could rise 15 percent from a year earlier on the global economic recovery after a contraction of some 16 percent seen in 2013.
Despite an upbeat outlook on Taiwan’s machine tool outbound sales, Hiwin noted that China is building up its own machine tool industry, meaning Taiwan could face pressing competition particularly in the low-end product segment.
However, the Taiwanese firm remains confident in Taiwan’s competitive edge in the high-end equipment segment.
Hiwin said it will devote more efforts in customer-tailored products to meet demand from different clients, adding that over the next three years it will spend more than NT$10 billion to expand its production capacity.