Taiwanese wheel manufacturer SuperAlloy Industrial Co. reported a 25% surge in third-quarter profit despite weaker sales, as its push into recycled aluminum products starts paying off.
Net income climbed to NT$189 million ($5.9 million) in the three months through September, while revenue fell 7.6% to NT$1.72 billion. The company’s gross margin expanded to 25.9% from 21.3% a year earlier, helped by cost controls and improved production efficiency.
The forged wheel maker plans to construct a second aluminum smelting facility as demand for recycled products grows. Recycled aluminum wheel production jumped 40% in the third quarter, offsetting slower shipments of customized products due to summer factory shutdowns and delayed new car model launches.
SuperAlloy Industrial aims to boost revenue from non-passenger vehicle segments to over 40% within three years, up from the current 15%. The pivot comes as China’s luxury car market faces headwinds, with imported vehicle sales dropping 13.5% in the first nine months of 2023.
The company maintains a positive outlook for the fourth quarter, traditionally a peak season for auto sales, despite challenges in European and Chinese electric vehicle markets.
