Mobiletron's Lithium-ion Powered Tools Strong Performers

Taipei, June 30, 2006 (CENS)--Mobiletron Electronics Co., Ltd., a maker of electric power tools and aftermarket (AM) automotive ignition parts listed on the Taiwan Stock Exchange (TSE), recently claimed that orders have been flooding in at its hand-tool production lines due to the company's successful development of power tools with lithium-ion batteries.

Mobiletron chairman Kim Tsai claimed that his company's power-tool shipments in the third quarter are expected to outstrip one million units, giving the company the chance to challenge an annual earnings per share (EPS) of NT$3.5 to NT$4 (US$0.11 to US$0.12).

In addition, Mobiletron has tapped into the tire pressure monitoring systems (TPMS) aftermarket in North America and begun small-batch shipment, and is also seeking opportunities to supply TPMS products to automakers in the region. As American road safety regulations require all new cars sold in 2007 to be equipped with TPMS, Tsai said, his company's revenue is expected to climb next year.

Currently, Mobiletron's power-tool and automotive-electronics parts businesses account for 60% and 40%, respectively, of the company's revenue. In the first four months of this year, the company's after-tax net profits have outstripped the total for all of last year, reaching a year-on-year growth of 278%.

Tsai explained that his company successfully developed seven lithium-ion battery power tool models in the fourth quarter of last year, which found an enthusiastic response in the North American do-it-yourself (DIY) market. Mobiletron has moved most power-tool production to its plant in Ningbo, Jiangsu Province of mainland China to cut costs, Tsai said, and the company's profit margin is expected to jump this year from 32% in 2005.

Mobiletron claimed that it is the fourth company in the world to manufacture lithium-ion power tools, trailing Milwaukee of the U.S., Makida of Japan, and Bosch of Germany. The Taiwanese company is very optimistic about its lithium-ion power-tool sales over the next few years, as such products require a high technical manufacturing capability in terms of electrical components and micro-electronics integration for battery-power management. Mobiletron also believes the advantageous production costs of its mainland China facility will help it compete in the market.