Formosa Plastics Group’s (FPG, 台塑集團) four major subsidiaries yesterday reported lower sales for last month as a result of falling prices and declining demand.
Formosa Petrochemical Corp (FPCC, 台塑石化) saw shipments of refined petroleum products increase 1,135 barrels from a year earlier, but its revenue still declined 9.02 percent annually to NT$57.07 billion (US$1.81 billion) although it was up 3.11 percent from June, as crude oil prices remained low, FPCC president Tsao Minh (曹明) told a media briefing in Taipei.
Revenue for this quarter is expected to be better than last quarter on the back of increasing demand for both oil and olefin products ahead of holiday seasons and the steady spreads of oil products, Tsao said.
Photo: Chang Hui-wen, Taipei Times
Nan Ya Plastics Corp’s (南亞塑膠) revenue dropped 13.6 percent year-on-year to NT$24.56 billion, as the prices of two of its main chemical products plunged, with ethylene glycol down 40.5 percent and bisphenol-A down 38 percent, Nan Ya chairman Wu Chia-chau (吳嘉昭) said.
However, revenue increased 11.7 percent over June’s, he said.
“Sales for this month are expected to be slightly higher than last month on the back of higher demand for electronic materials as China speeds up the construction of 5G base stations,” Wu said.
Revenue for this quarter would be flat from last quarter, as most customers remain conservative about their business, he said.
The company’s electronics materials business is expected to benefit from a growing trade spat between Japan and South Korea, despite uncertainties in market demand, he added.
Formosa Plastics Corp (FPC, 台塑), the group’s flagship unit, reported that revenue dropped 10.18 percent annually to NT$17.51 billion, due to falling spreads of its plastic products and sliding prices of its products, FPC president and chairman Jason Lin (林健男) said.
That is 4.59 percent lower than June’s total.
FPC expects revenue for this quarter to be lower than last quarter as its utilization rate would decline 4 percentage points to 89 percent, but product prices would bounce back thanks to annual maintenance at competitors’ manufacturing sites.
Formosa Chemicals & Fibre Corp (FCFC, 台灣化學纖維) saw its revenue fall 19.94 percent to NT$27.46 billion, mainly due to annual maintenance at its plants in Yunlin County’s Mailiao Township (麥寮), but that was 6.53 percent more than June’s figure, FCFC vice chairman Hong Fu-yuan (洪福源) said.
The company expects low demand for polyester products, as its utilization rate for its polyester business remains at 62.63 percent this month, compared with about 80 percent last year, he said.
Revenue for this quarter is expected to be slightly lower than last quarter, as the US’ new tariffs on Chinese imports would lower clients’ demand during the peak season and product prices would remain low, he said.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in