SEYI (SHIEH YIH MACHINERY) Announces First Quarter Results for 2011

TAIPEI, Taiwan, May 18, 2011 /PRNewswire-Asia/ -- SEYI (SHIEH YIH MACHINERY) (4533 TT), one of the world's leading producers of mechanical presses, announced that the Company's Consolidated Net Revenue in the First Quarter of 2011 was TWD 897,334,000 (US$ 31.3 million), a 66% increase over the prior year.

SEYI's year-on-year sales growth is attributable to the continued expansion of Mainland China sales and the recovery of the Company's key global markets. Sales to customers in Taiwan, the United States and South America increased by 224%, while Mainland China sales remained strong, increasing by 34% during the quarter.

In addition to the significant increase in sales, profitability measures improved across the board. As production volumes and manufacturing efficiencies continued to improve, Gross Profit increased by 117% from TWD 100,436,000 (US$ 3.5 million) in the first quarter of 2010 to TWD 215,759,000 (US $7.5 million) in the first quarter of 2011. Accordingly, the Company's Gross Margin increased from 18% to 24% of Net Operating Revenue.

For the quarter ended March 31, 2011, SEYI reported Net Income of TWD 54,969,000 (US$ 1.9 million), compared to a Net Loss of TWD 11,817,000 (US$ 0.4 million) in the first quarter of last year.  Fully diluted Earnings PerShare was TWD 0.38 versus a loss of TWD 0.10 per share in last year's first three month period.

Reduced tariffs between Taiwan and Mainland China under the Economic Cooperation Framework Agreement (ECFA) began to benefit SEYI during the quarter, enabling the Company to partially meet Mainland China demand with production from its Taiwan plant. Sales to Mainland China from Taiwan are expected to continue to increase throughout the year as import tariffs are decreased to zero in 2012.

The Company will also benefit in the coming quarters as KunshanII goes into full production at the end of June. Equipment that will enable SEYI to manufacture larger presses used by automotive customers was installed in April and is expected to be fully operational by the end of the second quarter.

"I am very pleased with SEYI's performance during the quarter and the strength we are seeing in all of our key markets," Ms. Claire Kuo, Chief Executive Officer, remarked. "Reduced tariffs under ECFA and the start of production at Kunshan II will further enhance the Company's performance during the balance of the year," Ms. Kuo added.

About SEYI

Founded in 1962, SEYI has established a position of global leadership in the press building industry over the past 48 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 will begin production in 2011. The new facility in Kunshan will 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.

Note: TWD 28.6892 to US$1.00

SOURCE SHIEH YIH MACINERY INDUSTRY CO., LTD