Kenda’s Bicycle Tyre Revenue Declines
YUALIN CITY, Taiwan – Weakening demand in the global bicycle market and rising rubber material prices have put a heavy pressure on Kenda’s revenue and result from January to September this year.
In the first three quarters of this year Kenda’s bicycle revenue reached TWD 4.9 billion (143 million euro), down 20% from TWD 6.17 billion (180 million euro) during the same period last year. The company’s financial report also shows that its revenue from bicycle tyres accounted for nearly 22% of Kenda’s total sales in 2016, compared with 28% last year.
Conservative outlook for 2017
“The company’s bike manufacturing clients, such as Giant Manufacturing Co and Merida Industry Co, are maintaining their conservative outlook for next year,” stated the Kenda official in a report in the Taipei Times.
Focus on car tyres
The Taipei Times also reports that the Taiwanese tyre manufacturer is putting strong emphasis on car tyres and will open a new factory in Vietnam for that next year. Kenda expects to add 10 to 12 Chinese automakers to its portfolio next year. Kenda Rubber generated a cumulative revenue of TWD 22.3 billion (651 million euro) in the first nine months of this year; down 7% compared to the same period last year. Net income declined by 16% to TWD 2.25 billion (66 million euro).