Giant Sees Revenues Drop in First Half-Year
TAICHUNG, Taiwan – For the first six months of 2017 Giant Manufacturing Co. Ltd. reports a 7.4% revenue drop to TWD 26.9 billion (€ 751m). Net income after tax dropped harder; with 29.5% to TWD 1.19 billion (€ 33.2m). Unfavourable currency exchange rates as well as ‘suffering’ Giant China caused the big decline in net income.
For its own brand Giant the Taiwan based bike maker reports “double-digit sales growth in local currencies for both Europe and the USA”. Comparing Giant’s performance with those of its stock market listed competitors Dorel and Accell huge differences become apparent.
‘Weak North American market’
Accell saw its North American revenues drop by 22% because of “disrupting business models of online competitors.” Dorel Industries and its Sports division with Cycling Sports Group (CSG) was also under pressure as a result of what the company called “the weak North American market”.
Next to pressure by online players also weather conditions affected Cycling Sports Group’s and Accell North America results. Somehow Giant did not met with these conditions as the company reports double-digit sales growth in the US. Giant Manufacturing Co. Ltd says in its financials report “For USA sales growth is mainly driven by MTB and road categories with growth in both units as well as dollars.” The Taiwanese producer also notes that they introduced its e-bike line to the North American market and that “Overall market feedback has been positive.”
European revenues in first half-year
For Europe the leading bike maker of Taiwan, which also produces bicycles and e-bikes in Lelystad, the Netherlands, saw its sales in Europe “driven by e-bikes.” Giant in particular notes “our proprietary drive system is well established and accepted in the marketplace”.
Giant’s conclusion is “With model year 2018 products to be introduced in the second half of the year Giant is positive it growth in the US and Europe.”
That doesn’t go for China as for this market is said “Giant China performance continues to suffer by soft demand and popularity of bike sharing which affect sales recovery for first half of 2017.”
For the whole of 2017 Taiwan’s number one producer forecasts further growth momentum in Europe and USA. “However unpredictable exchange rates as well as unrecovered China continues to pose challenges for 2017”. All in all Giant remains positive with its global position and manufacturing advantage. There has been no information about the company’s OEM business results. Moreover the performance of Giant’s Liv brand isn’t explicitly mentioned.