Universal Cement to Profit From Recovering Car Market in China

Taipei, July 29, 2009 (CENS)--Universal Cement Corp., one of Taiwan's leading producers of cement, stands to profit from the recovering automobile market in China with its 30% stake in Six Union Machinery Enterprise Co., a Taiwan-invested manufacturer of car parts in China.

With sales rising since the second quarter of this year, Six Union is expected to contribute over NT$260 million (US$7.92 million at US$1:NT$32.8) to Universal's overall earnings this year, higher than expectations.

Universal said it will turn from red to black this year, predicting it would be able to score NT$0.18 (US$0.005) in earnings per share this year.

Since the second quarter, Universal has seen growth in earnings from major products as cement and gypsum boards, turning its core business profitable. Six Union's growing profits will help Universal offset losses in China investments over the past few years.

Six Union is one of Taiwan's major manufacturers of automobile parts, as well as making car wheels in China and being a satellite factory for Toyota Motors. As of the end of last year, the company, capitalized at NT$1.7 billion (US$51.82 million), saw undistributed earnings exceed NT$5 billion (US$152.43 million) and net worth of over NT$60 (US$1.82) per share.