Electronic component manufacturer Johnson Electric reported a 2.7 per cent increase in net profit to a record US$187 million in the financial year to March 31.
Sales grew modestly by 2 per cent to US$2.14 billion. However, sales of the company's automotive products rose 11 per cent from the previous year to US$1.27 billion.
'The near-term prospects for demand are difficult to predict given the macroeconomic and political uncertainties that exist in most of the key geographies where we operate,' chairman and chief executive Patrick Wang Shui-chung said.
He said although the operating environment for global manufacturing businesses might continue to be challenging, the fundamental trend in the car industry was in the company's favour.
That was because 'the market needs devices to increase mileage and reduce emissions, and our products are strong in that respect'.
Wang said new products and innovative ideas made him optimistic about Johnson Electric's long-term prospects, while for this year he was 'cautiously optimistic'.