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Taiwan's Top Two Report Rise in Revenue

Published May 18, 2010

TAICHUNG, Taiwan (BRAIN)—April revenue at Taiwan’s top two bike manufacturers was up more than 30 percent over the same month last year, potentially indicating an early push for global production of 2011 bikes.

Giant, the island’s No. 1 manufacturer, saw revenue rise 34 percent in April to NT $1.2 billion ($40.3 million) from NT $943 million ($30 million) for the same month in 2009, according to figures released on the Taiwan Stock Exchange. Year-to-date, Giant’s Taiwan revenue is up 9 percent, from NT $5.2 billion ($165 million) for the first four months of 2009 to NT $5.6 billion ($181 million) for the same time period this year.

Merida, the second largest Taiwan manufacturer and primary supplier to Specialized, reported a similar increase. Merida’s April revenue rose nearly 39 percent, from NT $463 million ($14.7 million) in April 2009 to NT $644 million ($20.5 million). Year-to-date, Merida is up 16.5 percent with revenue at NT $3.7 billion ($118 million) compared with NT $3.1 billion ($101.4 million) last year.

The increase in April numbers could indicate manufacturers are ramping up production earlier than last year as a response to clients ordering bikes earlier in anticipation of higher sales or to help bring inventory levels back to normal levels.

Ideal, Taiwan’s smallest bike manufacturer, meanwhile, saw April revenue fall almost 44 percent, dropping from NT $493 million ($15.7 million) in 2009 to NT $277 million ($8.8 million) this year. Through April 30, Ideal’s annual revenue was NT $1.1 billion ($34.7 million) down 36 percent from 2009’s NT $1.7 billion ($54.2 million).

(NOTE: Numbers include manufacturers’ Taiwan operations only. All conversions use April 30 exchange rate of $1=NT$ 31.35.)

—Nicole Formosa
nformosa@bicycleretailer.com

Topics associated with this article: Earnings/Financial Reports

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