Eureka Design reports Q3 profit |on 25.8% surge in revenue
Eureka Design, a Thai company that designs and manufactures machinery for automobile and motorcycle components, yesterday reported a third-quarter net profit of Bt13.4 million versus a Bt2.2-million net loss in the same quarter of last year.
Revenue increased 25.8 per cent to Bt102.5 million on a steady stream of orders, effective cost control and entry to new markets.
The company expects revenue this year to grow by at least 30 per cent to Bt400 million as the local automobile industry keeps expanding. The company is driving into foreign markets in line with its business expansion plans, said Narakorn Ratchapolsitte, managing director and chief executive officer.
This quarter, Eureka Design expects to meet its growth targets for orders in hand and Bt400 million in revenue, up 30 per cent. The growth of the country’s automobile industry boosted orders from vehicle manufacturers and assemblers. The company earned Bt39.6 million on revenue of Bt291.7 million for the first nine months.
Eureka is waiting for Indonesia to approve its registration of a company there. In India and Vietnam, it is looking for appropriate locations to set up and register companies. Venturing overseas will help broaden Eureka’s revenue base and diversify business risks, Narakorn said. Eureka hopes to boost its business abroad from 12-15 per cent currently to 30 per cent of the total by 2015.
Narakorn said that despite the current sales slump in the auto market, Eureka’s business was not adversely affected as most of the company’s business pertained to start-up auto factories that require equipment and tools to support their future production.
