Mechanical Press Builder Reports Strong Sales

SEYI reports strong sales and profit performance as it installs new machinery in its second manufacturing facility in Kunshan that will produce higher tonnage stamping presses used in the automotive industry.

SEYI (SHIEH YIH MACHINERY) (Kueisan, Taoyuan, Taiwan), one of the world’s leading producers of mechanical presses, reported that net revenue in the third quarter of 2010 was TWD 803,737,000 (US$27,643,577), a 66 percent increase over the prior year. The manufacturer also reported strong profitability during the quarter, recording consolidated net income of TWD 35,426,000 (US$1,218,435), compared to a loss of TWD 20,971,000 (US$721,273) in the third quarter of 2009.

For the first nine months of 2010, SEYI reported net revenue of TWD 2,295,914,000 ($78,965,228), a 78 percent increase over net revenue of TWD 1,286,094,000 (US$44,233,672) during the same period in 2009. consolidated net income of TWD 83,306,000 (US$2,865,211) compared favorably with a consolidated net loss of TWD 121,981,000 (US$ 4,195,391) for the first nine months of 2009. Earnings per share for the first nine months of 2010 was TWD 0.66.

Improved product mix due to strong customer demand, combined with increased operating efficiencies, enabled the press builder to dramatically increase profit margins last year. For the first nine months last year, gross margin was 20.8 percent, compared to 13.4 percent during the same period in the previous year. The manufacturer has also been able to increase sales significantly without a corresponding increase in overhead costs. As a result, operating expenses, which include selling, administrative and research and development expenses, declined from 24.8 percent of net revenue in 2009, to 17.2 percent last year.

For the full year 2010, SEYI expects net revenues of TWD 3,061,066,000 (US$105,281,720), a 71 percent increase over 2009 net revenues of TWD 1,788,508,000 (US$61,513,603).

In commenting on SEYI’s financial results, Ms. Claire Kuo, Chairman and Chief Executive Officer, said, “We are very pleased with our strong performance last year and are confident in our ability to show further growth in sales and income in 2011. With a solid year behind us, and established manufacturing facilities in both Taiwan and mainland China, we are well positioned to benefit from continued growth in China and a rebound in global demand.”

The company also announced that new machinery is now being installed in the company’s second manufacturing facility in Kunshan, and that production will commence in the second quarter of 2011. The new capacity being installed in Kunshan will enable SEYI to produce higher tonnage stamping presses, such as those used in the automotive industry. With sales of over 18 million vehicles in 2010, China was the largest automotive market in the world for the second year in a row.

“Our second facility in Kunshan could not be coming on line at a better time,” Ms. Kuo said. “We expect the growth of China’s automotive industry to continue in the years ahead, and our new facility will provide us with the opportunity to benefit from that growth,” she added.

www.seyi.com.tw