Taiwan's Listed Companies Post Strong Earnings in Q1

Not including financial holding firms, Taiwan's 1,492 listed companies together generated after-tax net income of NT$326 billion (US$10.8 billion) in the first quarter, rising 9.5% from the same quarter of last year's NT$297.8 billion (US$9.9 billion) and topping Q1 results in 12 years although decreasing 18.1% from the fourth quarter of last year.

Industry executives ascribe the remarkable first-quarter result mostly to economic recovery in Europe and America, with China's economy  still growing but slowing. They blame the quarter-on-quarter decrease on the first quarter being normally a low season for electronics manufacturers whereas the fourth quarter is a high season.

These listed companies had total revenue of NT$6.7 trillion (US$223.3 billion) in the first quarter, adding 4.2% year on year but contracting 13.6% from the fourth quarter of last year.

The island's financial holding firms are all required to announce first-quarter result before May 30.

Outperformers of the listed companies in the first quarter were mostly in electromechanics, machinery, chemical, and biomedical sectors, generally producing 70% more profit year on year. Foods, electronics, and cement manufacturers generated 20% more profit yera on year.

Industry executives pointed out that after  nearly two years of stagnation the island's electromechanics sector has begun regaining growth since the beginning of this year mostly thanks to the rising market for industrial automation systems. In addition, the island's machine-tool industry is gaining the upper hand in the competition against international competitors by integrating cost advantages with efficient operation and quality production.

The island's chemical and biomedical sectors have mostly returned to profit in the first quarter this year from loss in the first quarter of last year, with operation growing at considerable pace and expansion investment reviving.

The island's electronics industry posted an average 24.1% year-on-year growth in the first quarter, with top players like Hon Hai Precision Industry Co., Ltd., Taiwan Semiconductor Manufacturing Co. (TSMC) and Herms Microvision Inc. (HMI) leading the way. TSMC saw Q1 earnings up NT$8.3 billion (US$276.6 million) year on year, while Hon Hai had an additional NT$3.2 billion (US$106.6 million).

The poor performers were mostly in contract laptop, handset, digital-camera, compact-disc, paper-making, glass/ceramic, and marine-transportation industries. (KL)