Cheng Loong's EPS in First 3 Quarters Reaches US$0.026

Taipei, Oct.29, 2012 (CENS)--Cheng Loong Corp., a major maker of industrial paper in Taiwan, announced an increase of 12.9% year on year (YoY) to NT$823 million (US$27.43 million) in net profits, with NT$0.77 (US$0.026) in EPS (earnings per share). Institutional investors say, due to steady price of paper pulp, slight price increase of waste paper in the U.S., acceptable market in China, and stabilized orders, the firm will see similar operation in the fourth quarter, with NT$0.95 (US$0.032) in EPS.

Cheng Loong saw revenues in the first three quarters grow 5.22% YoY to NT$18.807 billion (US$626.9 million), with NT$509 million (US$16.97 million) in operating profits, NT$2.426 billion (US$80.87 million) in operating margin, NT$990 million (US$33 million) in pretax profits, and NT$0.92 (US$0.031) in EPS.

Compared to 2011, Cheng Loong's net profits in the third quarter totaled NT$361 million (US$12.03 million), surging 60% YoY, to which a representative of the firm attributes the low comparison in the second half of 2011 due to uncertain economic climate and mounting pulp price.

Cheng Loong's No.10 industrial paper-making machine and the third set of cogeneration plant, costing NT$7 billion (US$233.33 million), in Houli District, central Taiwan, came online from the third quarter, whose 400,000 tonne capacity would boost significantly the firm's operation in the third quarter.

Cheng Loong has four paper-making plants in Taiwan, totaling 1.3 million tonnes in annual capacity, with 1.1 million tonnes of industrial paper, as well as having set up an industrial paper plant in Pudong, Shanghai with 450,000 tonne in annual capacity. With the new machine having reached full capacity in August, Cheng Loong's annual paper-making capacity hit 2.2 million tonnes, with 2 million tonnes of industrial paper.