TECO Strikes Gold with Wind Energy in 2011

Driven by robust shipments of wind power, TECO Electric & Machinery Co., a Taiwan-based large-sized supplier of home appliances and compressors, is expected to score a double-digit revenue growth in 2011.

Actively dedicated to developing wind turbines, the company worked out its first 2-megawatt permanent-magnet synchronous onshore model in September, 2010, which has been adopted by China Datang Corp., a Chinese power station operator, in a wind farm located in inner Mongol. This heralded the Taiwanese company’s entry into the emerging wind energy market.

In addition to the Chinese wind power customer, the company also filled a big order from a U.S. wind farm operator for 70 wind turbines in 2011, with aggregate shipment totaling over 250 wind turbines as of the end of the year.

Fueled by the new product line, the company stated, its combined revenue and net profits already amounted to NT$32.351 billion and NT$2.194 billion, or NT$1.21 per share, as of the end of the third quarter of 2011. Institutional investors noted, the company’s combined revenue for the whole year will post a double-digit growth from NT$45.043 billion in 2010, with full-year EPS (earnings per share) to hit a three-year high of NT$1.8.

Witnessing his company’s wind turbines well received worldwide, TECO chairman C.K. Liu claimed that the products will become TECO’s second-largest revenue contributor following heavy electrical equipment starting in 2012.

Recently, the company has also started filling an order for 30 wind turbines from a Vietnamese wind farm operator. TECO’s directors confirmed that the company will ship a total of 16 wind turbines to the wind energy customer in the first half of 2012, and the remainder in the second half, with each wind turbine selling for about NT$60-70 million. Hopefully, institutional investors noted, the company’s full-year shipment of such products will hit a new high of 100 wind turbines in the year.