Weak Euro Leads to Q3 Profit Drop for Taiwan Fastener Industry

Affected by the continuous European debt crisis, many Taiwanese fastener companies said that when receiving export orders for July and August in late May, they found an obvious drop of demand. Since the Q2 demand for fasteners recovered slowly, in view of the current order placement, the operation in Q3 may be weaker than that of Q2 or keep flat. In addition, the euro exchange rate continues to be weak, the profit gain in Q3 is full of variable factors.         

Mainly supplying fasteners to auto industry, San Shing Fastech Corp. indicated that concerning the reporting orders of its user end, shipment of Q3 may slightly decline compared to that of Q2. Sheh Kai Precision Co., Ltd., which mainly supplies bi-metal screws to the construction sector also pointed out that due to the European debt crisis, the number of screw orders for July and August would slightly decline than that for May and June. OFCO Industrial Corp. mainly produces hex screws and high strength bolts for the steel structure construction. Since the company’s scale is small, its order visibility is not high. But, its order quantity is stable and that of Q3 is expected to be similar to the quantity of Q2.