NAFCO Sees Growing Orders in Q4, But Faces Increasing Costs From Depreciation and Electricity

The sales of the aerospace fastener manufacturer NAFCO in Q2 and Q3 were slightly influenced by the inventory adjustments of its customers. Then, its sales in Q4 shows better growth compared to Q3. However, after the announcement of the actual capacity of its Ping-Zhen based factory, it will face problems including depreciation and higher cost for electricity consumption in Q4. The current appreciation of NTD can be also a factor to influence the profit. The operation of NAFCO in the second half of 2013 will need further adjustment. However, as there still exists long-term demand in the aerospace industry, NAFCO sees good development of the operation next year.   

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