Taiwan Cement Sees EPS in Q3 down 16% QoQ

Taipei, Nov.2, 2012 (CENS)--Taiwan Cement Group's three listed subsidiaries saw NT$7.372 billion (US$245.73 million) in net profits in the first three quarters, down 25% year on year (YoY). Institutional investors indicated that, with the coming high season, Taiwan Cement Co.'s (TCC) operation in the fourth quarter is likely to help the group to secure NT$10 billion (US$333.33 million) of profits in 2012.

Taiwan Prosperity Chemical Corporation (TPCC), an affiliate of the group, saw net profits in the first three quarters significantly slide 99.17% YoY to NT$20.3 million (US$676666.67). In contrast, benefiting from TCC's dividends and non-operating income, another affiliate China Synthetic Rubber Corp. (CSRC) saw net profits in the third quarter shoot up 80% to NT$614 million (US$20.47 million), with NT$2.5 (US$0.083) in EPS (earnings per share) in the first three quarters.

TPCC's weak performance in the third quarter was due to growing price of benzene and sluggish demand, with performance in the fourth quarter remaining uncertain due to steadily high prices of benzene.

In the third quarter, TCC sold 13.9 million tonnes of cement in Taiwan and China, not far behind that in the second quarter; however, due to continuous decline of cement price in China, the firm's net profits dropped 16% quarter on quarter (QoQ) to NT$2.068 billion (US$68.93 million), with NT$0.56 (US$0.019) in EPS.

A representative of TCC indicated that due to ceased infrastructural construction in China, the third quarter, supposedly a high season, suffered continuous cement price declines to the lowest in 2012 at NT1,030 (US$34.33) per ton in Guangdong.

As for the fourth quarter, a representative of TCC pointed out, with filled production capacity and low inventories, coupled with governmental policy to enhance infrastructural construction, cement price is expected to rebound to drive the firm's operation.

Institutional investors predict TCC is likely to gain US$48.09~64.12 million in profits in China in the fourth quarter, boosting the group's profits in 2012 to NT$10 billion (US$333.33 million).