TAICHUNG, Taiwan (BRAIN) — Giant Manufacturing says it racked up double-digit sales growth in e-bikes in Europe in the first half this year, contributing to a 7.9 percent increase in revenue. The company brought in NT$29.17 billion ($947 million) in the first half.
The company said favorable exchange rates as well as the e-bike craze contributed to the increase. It said sales in the U.S. have been flat, although it is seeing some growing demand for e-bikes there and it expects to see more growth in the U.S. following the introduction of its new model year lines. It said sales in China remain soft but it has seen an encouraging increase in sales of carbon bikes there this year.
Although protectionist actions in Europe and the U.S. are a concern, Giant said it is well positioned for continued global growth in the e-bike market, with a Taiwanese production facility to serve Europe and North America and new facilities in the Netherlands and Hungary to get closer to the European market, which the company called "the heart of the e-bike market." Its Chinese e-bike factory, which in the past has provided bikes for Europe and the U.S., is now focusing on lower priced e-bikes bound for China, Japan, Taiwan and other Asia markets.
"Looking forward to the second half of 2018, protectionism has brought uncertainties to the economy and there are still many challenges within the global market. Giant will continue to take leverage of its Asia and European production facilities, focusing on short supply lead time and global positioning to maintain its growth opportunities in this challenging market," the company said.
In the second quarter, Giant's net income before taxes (NIBT) was NT$1.83 billion, up 11.2 percent compared to 2017. However, net income after taxes (NIAT) was down 10 percent, to NT$1.08 billion, because of a new 20 percent income tax. The company said that if not for the new tax, NIAT for 2018 would have been up 8 percent compared to 2017.
