Listed firms seen to cut earning forecasts earlier than usual

Taipei, April 28, 2003 (CENS)--The worsening impact on business operations from severe acute respiratory syndrome (SARS) is seen to force listed companies to move up the timetable to lower their projected revenues and profits this year.

Under the regulations set by the Taiwan Stock Exchange (TSE) and the over-the-counter stock exchange, listed companies are required to make full disclosure on any major factor that will sway their financial performance and other business operations.

Both government economic planners and research institutions have revised downward Taiwan's overall economic growth rate for 2003 due to the SARS factor.

In addition to the continuous slide of share prices following the onslaught of SARS, most companies are expected to present lower financial forecasts to shareholders and securities analysts.

Companies traditionally revise their financial forecasts in August. But the intensified impact from SARS is forming them to push up the timetable this year.

The enterprises offering travel services and airlines are expected to have the sharpest lowering of projected financial performance in view of the most serious impact on their business. But companies in other major sectors will sustain similar negative impact.