New parts orders buoy FPI

Fortune Parts Industry Plc (FPI), an MAIlisted auto-parts maker, remains confident in its performance this year despite Thailand’s sluggish car sales.

The company has secured strong purchase orders from car makers in Thailand for new models such as the Toyota Hilux Revo, Mitsubishi Pajero Sport and Ford Ranger, said managing director Sompol Tanadumrongsak.

FPI reported first-half revenue growth of 12.05% to 922 million baht, though net profit fell by 7.6% to 91.5 million baht.

The company expects full-year revenue growth of 20% to 2.23 billion baht.

According to Mr Sompol, FPI has seen only a slight impact from the slumping Thai automotive industry because domestic sales make up just 13% of the company’s total revenue.

Some 47% of FPI’s revenue comes from Asia and the Middle East, with 17% from Africa and 16% from South America.

Mr Sompol expects global car output to surpass 90 million vehicles in 2015, up from 89.75 million last year.

FPI recently postponed construction of a plant in Ecuador for six months. The Ecuadorian firm, Importadora Alvarado, decided to change the plant’s location.

The plant was originally scheduled to finish construction by November.

Last April, FPI signed a memorandum of understanding with Importadora Alvarado for a 64-million-baht joint venture.

FPI owns 45% of the venture and local investors the rest. The Ecuador plant will also support sales in Bolivia, Colombia and Peru.

FPI’s next key destination is Turkey, where output will support the European market and India.

In other endeavours, the company is keen on a biomass power plant after signing a memorandum of understanding with three parties on June 30.

FPI holds a 25% stake in the project, which calls for 120 megawatts of power from 12 plants nationwide at an investment of 7.2 billion baht.

FPI shares closed yesterday on the Market for Alternative Investment at five baht, down five satang, in trade worth 4.58 million baht.