TAICHUNG, Taiwan (BRAIN)—It’s been a tough year so far for Giant Manufacturing, and its third quarter results have shown little improvement in its global position as the world’s leading bicycle maker.
But despite a 5.3 percent decline in revenue since January, the company is planning no changes in its overall strategy, Giant officials said.
First, here’s the numbers: Overall revenue through the third quarter ending in September was $1.45 billion compared to $1.46 billion year-to-date in 2016. Profit before taxes was $87.5 million, down 22.2 percent from $106.9 million year-to-date, while after tax profits fell 20.3 percent to $63.3 million.
However Giant, which trades on the Taiwan Stock Exchange, has seen a mild upsurge recently in its stock price trading at $5.27 per share. Still, that’s off some 22 percent since January when it was trading at $6.79 per share.
Most of Giant’s woes can be pinned to its position in China. “China’s market performance remains soft as it continues to be affected by a slow economy and bike-share programs,” officials said in a statement.
The company has significant investments in retail stores and manufacturing in China. But the nation’s fascination with bike-share has robbed sales from its retail partners, particularly for mid- to …read more