TSE-listed Auto-lamp Makers Saw Mixed Biz Results in Q3

Taipei, Nov. 4, 2005 (CENS)--Three auto-lamp makers listed on the Taiwan Stock Exchange (TSE) saw varying earnings results in the first three quarters. Depo Auto Parts Ind. Co. Ltd., a leading aftermarket (AM) auto-lamp exporter, reported especially good results for the time period.

Industry sources said that the fourth quarter is a traditional sales peak for makers of AM- and original equipment (OE) auto parts, and that Taiwan's lamp makers are expected to enjoy higher sales through the end of the year.

Depo, often the profit champion among Taiwan's auto-parts suppliers, reported third-quarter pretax earnings of NT$624 million (US$18.63 million at US$1: NT$33.5), up 39.9% from the second quarter, and accumulated net earnings of NT$1.2 billion (US$35.82 million), better than the same period of last year. The company attributed its lucrative third-quarter operations to its profit margin recovering to more than 40% during the time period. Income from foreign currency exchanges also helped the company's bottom line.

Depo simultaneously sells parts in the AM and original equipment service (OES; replacement parts that are sold through automakers or tier-one parts suppliers' sales channels) markets. The company sells its auto lamps under the DEPO brand in more than 100 nations worldwide. In North America, Depo said, the company has successfully tapped into the supply chain for Keystone Automotive Industries Inc., and has received OES orders from GM and Chrysler.

Due to the company's high recent earnings, foreign capital currently holds a 24.82% stake in Depo.

Ta Yih Industrial Co., the largest OE auto-lamp supplier in Taiwan, controls more than 90% of the domestic market. Ta Yih reported pretax earnings of NT$56 million (US$1.67 million) in the third quarter, down 14.3% from previous quarter, and accumulated net earnings of NT$186 million (US$5.55 million) for the first three quarters. Ta Yih says it had lower third-quarter earnings because the traditional Chinese Ghost Month in that time period is an off-season for automobile sales in Taiwan.

Ta Yih pointed out that its sales in the fourth quarter are expected to grow, and that most local automakers will promote new or upgraded car models beginning late this year and continuing into early next year. Ta Yih also added that automakers are increasingly adopting high-intensity discharge (HID) headlamps and light-emitting diode (LED) taillights in their new models. Because these parts have higher profit margins than their conventional counterparts, Ta Yih expects to see growing revenues and profit margins in the future.

TYC Brothers Industrial Co., Ltd., Ta Yih's affiliate and formerly Taiwan's largest auto-lamp exporter, reported a loss of NT$46 million (US$1.37 million) in the third quarter, and an accumulated loss for the first three quarters of NT$208 million (US$6.21 million). The company's average profit margin in the third quarter was 14.03%.

TYC said that it has signed an agreement with the Certified Automotive Parts Association (CAPA) of the U.S., and that the company is expecting clear sales gains in the North American insurance AM parts market as a result.

Operations of TSE-listed Auto-lamp Makers (First Three Quarters, 2005)
Company	Pretax Earnings for first three quarters	Y/Y Comparison	EPS (NT$1)
Depo	1,559	13.13%	8.48
Ta Yih	199	-18.6%	2.45
TYC	-232	--	-0.86

Unit: NT$1 million