Highway Holdings Limited, along with their subsidiaries, manufacture a wide variety of products for original equipment manufacturers and contract manufacturers in Asian countries, Germany and North America.
They provide their own metal stamping, spray painting and screen printing, plastic injector molding and pad printing along with electronic assembly services of chip on board assembly, IC Bonding and SMT automatic components assembly of printed circuit boards.
The Company also manufactures clocks and watches, camera casing for underwater digital cameras and waterproof LED lights for various OEM customers.
Roland Kohl, President and CEO of Highway Holding recently reported 2nd quarter earnings increased to $410,000 or $0.11 per diluted share, from $139,000, or $0.04 per diluted share, a year earlier. Net sales for the same period climbed 50% to $7.8 Million from $5.2 million a year earlier. Net income for the first half of fiscal 2011 was $454,000, or $0.12 per diluted share, compared with net income of $3,000, or $0.00 per diluted share, a year earlier. Net sales for the six month period jumped 45.3 % to $14.3 million from $9.8 million a year ago.
Kohl stated that despite a significant increase in both net sales and income, it would have been higher had it not been for a 60% increase in labor costs that could not be passed along due to existing contracts.
A recent contract valued at $5.56 million for protective cases for a popular mobile phone from a U.S. based supplier has commenced and will be completed within sixty days. Highway Holdings anticipates receiving similar ongoing monthly orders upon achieving full production capacity.
Alan Chan was recently appointed as the new CFO. He has an impressive finance and accounting background, speaks fluent Mandarin, Cantonese and English, and has extensive experience operating in China.
Highway Holding seem well placed to repeat the increase in profits based on their ability to provide a wide variety of services to their customers and their projected higher sales. They have also absorbed the initial tooling and robotic manufacturing technology which will offset higher labor costs to come.
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