Universal Cement in Taiwan to See Earnings Double in Q4

Taipei, Nov. 23, 2009 (CENS)--The sizable earnings from non-core business will help Universal Cement Corp., one of Taiwan's leading producers of cement, to post earnings in the fourth quarter double that in the previous quarter.

Universal generated such earnings mainly from investing in Six Union Machinery Enterprise Co., a Taiwan-invested manufacturer of automotive parts in China. Capitalized at NT$1.7 billion (US$52.46 million at US$1:NT$32.4), Six Union has become China's largest manufacturer of automotive wheels.

Over the past four years, Six Union achieved earnings equal to its capitalization each year, except for last year with earnings sliding to only NT$896 million (US$27.65 million) because of the downturn. With per-share net worth reaching over NT$40 (US$1.23), Six Union has retained earnings of over NT$6 billion (US$185.18 million) in hand.

Universal Cement noted Six Union registered NT$854 million (US$26.35 million) in earnings in the first half of this year, almost the same as last year.

Universal Cement holds three director seats and a 29.86% stake in Six Union, which will likely contribute NT$600 million (US$18.51 million) to Universal Cement's overall earnings this year.

Since the second quarter of this year, Universal Cement has seen growth in earnings from its major products as cement and gypsum boards, helping its core business to be profitable.