Taiwanese bike leaders post January revenue gains

05/03/2010

Giving some optimism for the economic outlook, and specifically its impact on the global bike industry, Taiwan’s top three assembled bicycle manufacturers all posted significant year on year growth in January revenues.

Number one operator Giant Manufacturing posted revenue of NT$1.53 billion (US$46.9 million) in January, up 11.55% year on year and reportedly a new January record for the company. Giant`s global consolidated revenue in January hit NT$3.1 billion (US$95.4 million), up 6.8% year on year and also a new high for the period.

Merida Industry, the number two player in Taiwan also reported record results. The company registered January revenue of NT$984 million (US$30.3 million), up 26.2% year on year; and Merida shipped 81,500 new bikes, a 50.16% year on year increase.

According to Merida, the global bicycle market is showing clear signs of recovery and visibility on forward orders has extended to June. The company`s production lines are reportedly busy due to greater than expected demand.

Giant said that in-bound orders in January were steady and that its order visibility had likewise extended to June. The company stressed that the January revenue performance met its original expectations.

Third placed Ideal Bike Corporation reported January revenue of NT$297 million (US$9.1 million), a 0.125% year on year increase.

Meanwhile, Merida also attributed its revenue growth to the steady sales of both its 2010 and 2011 new models. The company plans to kick off production of 2011 models in April and anticipates lucrative operations in the second quarter, a typically slow season for bike industry.

The average selling prices of Merida`s products are expected to continue climbing in the first half. However, despite increased projected shipments, the growth of average pricing may be held back somewhat – due to the increased production of middle-end models.

www.giant-bicycles.com
www.merida-bikes.com
www.idealbike.com.tw

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