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Formosa Plastics' profits rise
Formosa Plastics Corp (台塑), Taiwan's biggest maker of polyvinyl chloride, said it expects profits to rise a quarter to NT$12.4 billion (US$358 million) this year on increased sales.

Formosa Plastics expects net income to rise from NT$9.90 billion last year. Sales will probably climb to NT$78.4 billion from NT$65.7 billion, the company said in a statement to the Taiwan Stock Exchange Corp.

Meanwhile, the Formosa Plastics Group (台塑集團), the parent company, plans to launch a logistics business in China next month, an official said yesterday. The group will invest an initial US$2 million in the logistics operations to deliver materials produced in Taiwan to its Chinese customers. The logistics unit was set up in Hong Kong earlier this month to prepare for the launch of the logistics business which is designed to shorten delivery times for Formosa's Chinese clients.

China Air's sales fall one-third
China Airlines Co (中華航空), Taiwan's biggest airline, said sales declined almost a third in the past two months from a year earlier as people put off travel plans because of SARS and the carrier cut flights due to overcapacity on some routes.

The airline's sales dropped by NT$4.2 billion (US$121 million) to NT$9.1 billion in the two-month period, it said in a statement.

SARS cost the company NT$3.3 billion in revenue, while it lost NT$900 million from a reduction in flights because of a slump in demand unrelated to the virus.

EVA Airways Corp (長榮航空), Taiwan's second-largest carrier, said Friday it cut its 2003 pretax profit forecast by 94 percent to NT$121 million because of SARS.

The company previously projected pretax profit of NT$2 billion, according to a statement through the Taiwan Stock Exchange Corp. This year's revenue may be NT$63.8 billion, compared a previous forecast of NT$68.6 billion.

Cathay Life doubles investment
Cathay Life Insurance Co (國泰人壽), Taiwan's biggest life insurer, said it wants to more than double its planned investment with a Chinese partner to US$50 million, and is resuming talks as concern about the SARS outbreak eases.

The plan to increase the investment from US$22.9 million was approved by the Investment Commission, said Lee Chang-ken (李長庚), chief strategy officer at Cathay Financial Holding Co (國泰金控), the Taipei-based parent company. Lee declined to identify the company's proposed China partner. Cathay Life had planned to sign a venture agreement last month, a local newspaper reported yesterday, without saying where it obtained the information.

Shin Kong to absorb affiliate
Shinkong Insurance Co (新光產險) Chairman Wu Tung-hsien (吳東賢) plans to combine the general insurer under sister company Shin Kong Financial Holdings Co (新光金控) early next year, a local newspaper reported, citing an unidentified person.

The combination of the companies, controlled by the Wu family, which owns Taiwan's second-largest non-life insurer, would pave the way for a merger between Shin Kong Financial and Taishin Financial Holdings Co (台新金控), the newspaper said.

Taishin, owner of Taiwan's second-largest credit card issuer, halted merger talks with Shin Kong Financial in July because of disagreements over the coverage of losses at Shin Kong's life insurance unit.

NT dollar still rising
The New Taiwan dollar yesterday traded higher against its US counterpart, rising NT$0.020 to close at NT$34.591 on the Taipei foreign exchange market.

Turnover was NT$275 million.
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