TECO Electric & Machinery Co. Chairman Morris Li announced plans to accelerate the company’s expansion into the North American market, focusing on the inverter and transformer sectors. The electromechanical giant aims to achieve this through mergers and acquisitions, with a goal of increasing North American revenue to over 20% within three years. TECO is currently evaluating eight potential investment projects, including heavy power and frequency converters, with plans to see results within a year.
Despite these ambitions, TECO’s performance in the first half of the year reflects challenges. The company reported a 5.7% year-on-year decline in revenue, totaling NT$28.256 billion (US$881.4 million). Gross profit margin stood at 25.6%, while after-tax net profit dropped by 25% to NT$2.806 billion (US$87.6 million), leading to an after-tax EPS of NT$1.33.
The decline was largely driven by reduced demand in key markets such as North America, China, and Europe. However, the smart energy sector showed resilience, contributing 20% to total revenue, with green energy accounting for 41% of the energy business segment.
Looking ahead, TECO plans to strengthen its presence in North America and Southeast Asia, with a particular focus on the growing heavy electricity market. The company is optimistic about leveraging its existing foundations to expand in these regions and capitalize on long-term growth opportunities.
