SEYI Reports Higher Earnings and Margins, Despite a Weak Global Economy and Slowing Emerging Markets

TAIPEI, Aug. 28, 2012 /PRNewswire-Asia/ -- SEYI (SHIEH YIH MACHINERY) (4533 TT), one of the world's leading producers of mechanical presses, released its audited financial results for the Six Months Ended June 30, 2012.

For the first six months, SEYI reported Net Sales of TWD 1.9 billion (US $61.9 million), a 10% decline from Net sales of TWD 2.1 billion (US $68.9 million) recorded in the same period last year. Continuing economic uncertainty in Europe, a tentative economic recovery in the United States, and slowing economies in China, Brazil and other emerging markets have adversely impacted sales in 2012.

Despite strong sales headwinds, SEYI reported increased profits and margins. Net Income for the six months ended June 30, 2012 was TWD 92.1 million (US $3.1 million), a 6.7% increase from last year's Net Income of TWD 86.3 million (US $2.9 million).  Earnings Per Share was TWD 0.64, compared to TWD 0.60 during the same period last year.

On a lower level of sales, SEYI's Gross Profit increased by 3.9% to TWD 459.2 million (US $15.3 million) from TWD 441.7 million (US $14.8 million) in 2011. As a result of continued attention to costs and improved product mix, SEYI's Gross Margin improved to 24.8% of Net Sales, a 15.9% increase from 21.4% recorded last year.

SEYI's financial condition remains strong. Cash and Cash Equivalents of TWD 942.0 million (US $31.5 million) at June 30, 2012 exceeded short and long term debt of TWD 736.9 million (US $24.6 million).

Separately, SEYI announced that the Company has established a German subsidiary in Frankfurt and has hired Michael Juhl as General Manager. A graduate of the Copenhagen Business School, Mr. Juhl has more than twenty-five years of sales and management experience in Europe, including more than ten years with various divisions of Robert Bosch GmbH. "While European economies are now going through a difficult period," Mr. Juhl said, "Europe as a whole is one of the world's largest markets. When the region recovers, SEYI will be well positioned to capitalize with an expanded sales presence." 

SEYI also announced that, on August 14, the Company commenced construction of a new office facility in China.

In commenting on SEYI's first half results, Ms. Claire Kuo, Chairman and Chief Executive Officer said, "We are, of course, disappointed with the slow growth of the global economy, but we are pleased that we have been able to improve profits and margins in this very difficult economic environment. In addition to the operational improvements we have made, I am also pleased with our further commitment to China, the incorporation of our new subsidiary in Frankfurt, and the addition of Michael Juhl to our management team." As the Company completes its first fifty years in business, Ms. Kuo added, "SEYI is better positioned and financially stronger than it has ever been in its long and distinguished history."

Note: TWD 29.9300 to US$1.00

About SEYI

Founded in 1962, SEYI has established a position of global leadership in the press building industry over the past 50 years. SEYI manufactures mechanical presses, ranging in size from 25 to 2400 tons, at facilities located in Taiwan and the People's Republic of China. At its original location in Taoyuan, Taiwan, SEYI operates a 12,500 square meter facility, and in 2003 the Company began production in Mainland China at an 11,000 square meter facility located in Kunshan, Jiangsu Province. Combined production capacity at the Taoyuan and Kunshan plants approaches 4,000 presses annually.  Construction of a second 11,000 square meter facility in Kunshan was completed in 2009 and began production in 2011. The new facility in Kunshan can manufacture up to 300 presses annually, ranging in size from 300 to 4,000 tons. SEYI products have been sold to customers in over 40 countries around the world, and the Company is the dominant foreign supplier to Mainland China, India, South East Asia and the Americas in terms of volume.  SEYI is the recipient of numerous quality awards from around the world.

The Company completed an initial public offering of its common stock in 2002 and is traded on the Taiwanese OTC (4533 TT) market.

SOURCE SEYI (SHIEH YIH MACHINERY)