Cheng Uei to Challenge US$1.55 B. in Consolidated Sales in 2010
2010/06/24 | By Ben ShenTaipei, June 24, 2010 (CENS)--Cheng Uei Precision Industry Co., the flagship of the Foxlink Group, will see consolidated sales grow between 20% and 25% to challenge US$1.55 billion in consolidated sales in 2010.
The company attributed such robust sales growth to the 10% price hike of its major line of electronic connectors. Cheng Uei chairman T.C. Gou said customers have been receptive to such rises beginning from the second quarter, necessary to offset wage increases in China.
Alongside raising prices to offset impact of wage hikes, Cheng Uei will set up automated production lines and switch production bases to interior provinces as Anhui and Jiangxi.
Despite the poor performance in the first quarter of this year due to conservative investment willingness amid the slow recovery, Cheng Uei is expected to see after-tax earnings grow by between 10% and 15% to reach US$47.82 million, or US$0.1 in EPS, this year.
Cheng Uei said it would set up 100 specialized stores to distribute Apple Computer products in Shanghai Municipality and Jiangsu province of China and Hong Kong within the next three years, adding that China is turning into a major world market where many electronics firms are setting up distribution channels.