Three Tire Giants in Taiwan Report Revenue Drop in June

Taiwan media reported that three local tire producers, Cheng Shin Rubber Ind., Kenda Rubber Ind., and Hwa Fong Rubber Ind., released their operating reports for June.

Statistics show that Cheng Shin’s business revenue lessened 2.37% year on year in June to 10.30 billion NTD and that for the first half of this year climbed 0.4% to 60.31 billion NTD.

Kenda’s business revenue in June and the first half of this year was 2.53 billion and 15.14 billion NTD, down 3.59% and 4.69%, respectively.

Kenda reckoned that RMB depreciated in June from May against USD, while NTD appreciated against USD, the fluctuation had affected its business performance.

The firm’s clients in the Chinese mainland’s bicycle market were not active in replenishment, while the European and North American markets consumed theinventory; Kenda expects the sales in the second half and in 2017 will be better when new product models are rolled out.

In addition, the shifting of seasons also impacted Kenda’s sales in North American market.

In Middle East and Islam countries such as Indonesia, all business activities slowed down during the Ramadan from early June to early July, so the tire sales in Middle East and North Africa were sluggish.

Hwa Fong’s business revenue in June and the first half year dropped 15.89% and 10.17%, respectively, to 489 million and 3.12 billion NTD.