Formosa Plastics Group's Four Affiliates All Make Profits in Q3
2012/10/08 | By Steve ChuangTaipei, Oct. 8, 2012 (CENS)--Formosa Plastics Group's four mainstay affiliates, namely Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemical & Fibre Corp. and Formosa Petrochemical Corp., all finished the third quarter of this year with profits.
At a joint investors conference held earlier, Formosa Plastics reported pretax profits of NT$1.26 per share, Nan Ya NT$0.69, Formosa Chemical & Fibre NT$1.09 and Formosa Petrochemical NT$1.17.
Separately, Formosa Plastic posted aggregate revenue of NT$130.989 billion, including NT$13.07 billion scored in September, for the first nine months of this year, down 10.8% from a year ago, with pretax profits of NT$2.19 per share to lead among the others.
Among heads of other affiliates, Jason Lin, president of Formosa Plastics, forecast a comparatively optimistic outlook for the fourth quarter, primarily because his company is very likely to benefit from the shutdown of Nippon Shokubai Co., Ltd.'s fire-damaged plant of polymers, which has raised market worries about shortages of diaper and sanitary pad materials, such as acrylic acid (AA), superabsorbent polymers (SAP) and acrylic ester (AE).
Accordingly, Lin indicated that prices of the materials will surge in the months to come partly on a peak season, and partly on tight supply following the shutdown of Nippon Shokubai's damaged plant, which is estimated to take more than a half year at least to restore. He revealed that Formosa Plastics has moved to ramp up output, trying to fill the shortage.
Meanwhile, Nan Ya attained accumulative revenue of NT$137.669 billion in the first nine months of the year, down 8.1% from year-on-year, with pretax profits of NT$0.57 per share. The president C.C. Wu noted that his company's profits are unlikely to regain growth momentum in the short term, unless all the four plants of ethylene glycol are fully restored from a fire accident in mid-October at the earliest. Therefore, whether Nan Ya will enjoy better operating performance in the fourth quarter over a quarter ago remains to be seen, Wu said conservatively.
Formosa Chemical & Fibre and Formosa Petrochemical posted January-September revenue of NT$214.017 billion and NT$648.352 billion, respectively, down 2.7% and up 8.8% from a year earlier, and aggregate pretax profits of NT$0.65 and NT$0.05. For different reasons, both executives of the two companies modestly predict business outlooks in the fourth quarter.
Operating Performances of Formosa Plastics Group's 4 Major Affiliates | ||||||
Company | Sept. Revenue | MoM Growth | Jan.-Sept. Revenue | YoY Growth | Pretax Profits per Share for Q3 | Jan.-Sept. Pretax Profits per Share |
Formosa Plastics Corp. | NT$13.070 Bn. | -10.5% | NT$130.989 Bn. | -10.8% | NT$1.26 | NT$2.19 |
Nan Ya Plastics Corp. | NT$15.645 Bn. | 0.2% | NT$137.669 Bn. | -8.1% | NT$0.69 | NT$0.57 |
Formosa Chemical & Fibre Corp. | NT$20.000 Bn. | -10.9% | NT$214.017 Bn. | -2.7% | NT$1.09 | NT$0.65 |
Formosa Petrochemical Corp. | NT$78.917 Bn. | 11.4% | NT$648.352 Bn. | 8.8% | NT$1.17 | NT$0.05 |