Giant and Merida Report Growth Figures Over 2008

TAIPEI, Taiwan - On the occasion of a bicycle event organized by Merida last weekend, the Taiwan Bicycle Exporters’ Association (TBEA) reported new figures over the period January – June 2008. According to the TBEA, bicycle exports to the European Union rose by 11.76% year-on-year to 1.9 million bikes in the first half of this year. The export value to the EU surged by 27% to € 213.8 million (US$ 340.6 mn) during the same period.

“I am rather upbeat about the bicycle industry’s sales growth in the long run” said Jeffrey Sheu spokesman of Giant in the Taipei Times yesterday. “And I believe sales will grow at a faster pace if more and more countries attempt to restrict motor vehicles.”

Giant Manufacturing registered € 288.4 million (US$618.7 mn) in revenues in the first half of this year, up 25.1% from a year earlier. Net income climbed 14.5%.

Appreciation of the New Taiwan dollar

Giant’s gross margin was heavily affected by the rising raw material costs and the appreciation of the New Taiwan dollar against the US currency. “Although prices of aluminum and carbon fiber have been more stable recently, compared with three years ago, they have increased nearly three-fold,” Jeffrey Sheu said.

According to Giant they exported 910,000 units of bicycles from Taiwan last year. For 2008 they expect to ship more than 1 million units. The company’s average FOB price of Taiwan-exported bicycles was € 213 (US$ 340) last year, and the company expects to see a 10% increase this year.

William Jeng, spokesman and senior vice president of Merida Industry, said in the Taipei Times that the company aims to export between 780,000 and 800,000 bicycles this year, up from 755,000 last year.

“Our average FOB price of Taiwan-exported bicycles fell to € 251 (US$ 400) in the first 7 months of this year from € 257 (US$ 410) a year earlier because of the increasing export of medium- to low-priced bicycles”, Jeng said.