Taiwan Bike Makers Hit Record Revenues

TAIPEI, Taiwan - Taiwan's top two bicycle makers, Giant Manufacturing Co., Ltd. and Merida Industry Co., Ltd., are expected to score record annual revenues of TWD 8.5 billion (€ 196.8 mn) and TWD 5 billion (€ 115.9 mn), respectively, this year. Giant shipped 82,937 high-end bicycles in November, a traditional peak month, up 5,000 units from a month earlier. The company's domestic operations generated a revenue of TWD 996 million (€ 23.0 mn) in November, a record monthly high, and garnered accumulated revenue of TWD 7.73 billion (€ 178.9 mn) for the first 11 months. The two figures grew by 57.7% and 27.3%, respectively, from one year earlier. Giant shipped some 820,000 bicycles from its Taiwan plants this year, with an average unit price of TWD 9,400 (€ 217.50) in the first 11 months. Giant's average unit price of its Taiwan-exported bikes, however, rose to TWD 12,000 (€ 277.65 ) in November, 27.6% higher than the average figure for the first 11 months. Institutional investors estimated that Giant's annual revenue is likely to challenge TWD 8.5 billion (€ 196.6 mn), outstripping the original estimate of TWD 8 billion (€ 185.1 mn), as December is still a peak month. Merida also enjoyed a very positive year. The company scored revenues of TWD 531.02 million (€ 12.3 mn) in November, up 18.56% from the same month last year; and posted sales of TWD 4.54 billion (€ 105.0 mn) for the first 11 months, up 14.9%. Merida has entered full-capacity production since the beginning of the fourth quarter. The company's average FOB price is maintained at the level of over TWD 10,660 (€ 246.57). Merida's magnesium alloy business also saw sales growth. The company shipped 98,182 magnesium-alloy panels for notebook PC housings in October, up 50.8% from the same month of last year, and it delivered 101,054 panels in November, up about 20%. Most institutional investors are optimistic about Merida's meeting the annual revenue goal of over TWD 5 billion (€ 115.9 mn) this year due to the flooding orders for the company's bike products and Merida's upgraded defect-free ratio in its magnesium-alloy production. (MH)