Some 1,500 Taiwan Listed Companies Earn US$58.06 Bn. in 2014

Throughout 2014, some 1,500 of Taiwan's listed companies made a total of NT$1.8 trillion (US$58.06 billion) in after-tax net income, increasing 18 percent year on year to hit all-time high, with the most profitable industries listed on the island's main-board and over-the-counter markets last year being liquid crystal display (LCD), semiconductor, dynamic random access memory (DRAM), transportation, and finance.

Based on promising economic outlook worldwide due to recent quantitative easing in the EU, beneficial impact of lower crude oil prices on firms whose operating cost consist of relatively high proportion of fossil fuel, steadily growing American economy and encouraging development of the bailout of Greece, the island's industry executives forecast the earnings from Taiwan's publicly held companies to further rise 9 percent this year, to around NT$1.97 trillion (US$63.54 billion).

Taishin Securities Investment Trust Co., Ltd. Chief Investment Officer (CIO) S.C. Wang ascribes the stellar 2014 profitability mostly to persistent recovery in the American economy, plummeting oil prices, and normalization in some markets.

He adds that the island's electronics industry has posted strong profitability mostly due to strong market for smart phones, uptrend in global stock and treasury markets, brisk demand for new Apple smart phones, and recovery in DRAM and LCD markets.

For transportation industry, record setting low oil prices have helped to cut cost for many of the island's airlines and freight shipping to turn operations from red to black.

Jihsun Securities executives predict the island's listed companies to see earnings hit new highs this year thanks to sustained economic recovery.

He points out that the island's LCD industry has emerged from loss and begun making money since the first quarter of 2014 in spite of unfavorable factors including the Free Trade Agreement (FTA) signed between mainland China and South Korea over commodities including LCD panels, and the rising self-content of China's LCD industry.

Last year profitability of Taiwan's LCD industry surged significantly mostly due to rising price quotations, decreased manufacturing costs and completion of booked depreciation.

The island's IC companies, including Taiwan Semiconductor Manufacturing Co. (TSMC), United Microelectronics Corp. (UMC), Advanced Semiconductor Engineering Inc. (ASE) and Siliconware Precision Industries Co., Ltd., owe their banner earnings in 2014 to advances in  process technologies, with orders from Apple helping to boost TSMC's 2014 earnings to new high.

Taiwan's DRAM industry has been on a roller coaster, with chipmaker Inotera Memories Inc. seeing earnings jump last year after it began making money in 2013.

(KL)