Chinese molder Deswell sees sales drop, losses grow

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: August 20, 2013 1:51 pm ET
Updated: August 20, 2013 1:53 pm ET

Related to this story

Topics China, Injection Molding

Rising costs and soft export markets continue to plague China-based injection molder Deswell Industries Inc., with revenues dropping 16 percent to $54.1 million in its most recent fiscal year and losses mounting, the company said in a filing to the U.S. Securities and Exchange Commission.

Publicly traded Deswell, which has 360 presses at its factory in Dongguan, said its fiscal year ending March 31 was a difficult one, with losses rising to $1.99 million, up from $1.46 million the previous year.

The company, which is based in the Chinese territory of Macau and also does business as Jetcrown Industrial Ltd., put part of the blame on sluggish demand among customers in major Western export markets.

“Our customers in the United States are still feeling the effects of the economic downtown and are recovering more slowly than the markets there generally,” the company said. Its major markets include telephones, audio visual equipment and computer peripherals.

The firm also said rising wages in Dongguan are taking a toll on operations. CEO Frankie Tse noted in a statement that the minimum wage in Dongguan rose 19 percent this year and that the strengthening Chinese yuan hurt operations.

Still, the firm pointed to what it said were bright spots. It said one of its customers, Lenbrook Industries Ltd., became more than 10 percent of its business, evidence that its strategy of targeting existing customers for growth was paying off.

“We are confident, in spite of a challenging year, that we will be able to deliver improved performance in fiscal 2014 for our shareholders,” Tse said.

 


Comments

Chinese molder Deswell sees sales drop, losses grow

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: August 20, 2013 1:51 pm ET
Updated: August 20, 2013 1:53 pm ET

Post Your Comments


Back to story


More stories

Image

Hyundai Mobis investing $24 million to expand in Slovakia

January 22, 2015 9:28 am ET

South Korean auto parts maker Hyundai Mobis has unveiled plans to invest about 21 million euros ($24.1 million) to modernize and expand the output...    More

Image

Pyramid investing in new presses as it targets sales in medical, technical molding

January 21, 2015 1:40 pm ET

Custom molder Pyramid Plastics Inc. is investing to boost its stake in medical and technical molding.    More

China's growth hits 24-year low

January 21, 2015 10:17 am ET

The world's second largest economy reported its 2014 gross domestic product growth at 7.4 percent, the lowest since 1990. The plastics industry...    More

Image

Emerging markets beckon China's toymakers

January 21, 2015 2:08 pm ET

Manufacturers at the recent Hong Kong Toys & Game show say plummeting oil prices have had negligible effect on toy makers' bottom lines.    More

Image

Hart takes hands-on approach

January 21, 2015 11:06 am ET

When Melanie Hart walks the floor of one of her plants, she solves problems.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events