Yue Yuen confident its profits will surge
The world’s largest shoe maker, Yue Yuen Industrial (Holdings) Ltd, has earmarked US$150-160 million for capital expenditure this fiscal year in order to extend its capacity to produce shoes and materials.
Executive director, Edward Ku said that for the financial year ended September 2003, the company expected to post double-digit growth in sales and higher profit margins.
In its last fiscal year, the company, which makes athletic footwear for most major brands, including Nike and Reebok, increased its profits by 11.8% to US$228.57 million.
Ku added that growth forecasts were strengthened by the firm’s October 2002 acquisition of shares in 67 raw material manufacturing groups from its parent firm, the Pou Chen Corporation, for US$427 million.
