Tue, Aug 31, 2004 - Page 11 News List

Business Briefs

AGENCIES

■ China Motor profit falls 4.4%

China Motor Co (中華汽車), which makes Mitsubishi Motor Corp vehicles, had a 4.4 percent drop in profit in the second quarter because of increased production cost. Net income fell to NT$2.4 billion (US$69 million) from NT$2.5 billion a year earlier. The figures were derived by subtracting first-quarter from first-half figures reported to the Taiwan Stock Exchange yesterday. China Motor's second-quarter sales, reported earlier, rose 1.9 percent to NT$16.9 billion. The company didn't disclose unit sales in the report to the exchange. China Motor said last month it was paying more for galvanized steel coil after the price in June rose more than two-thirds a ton from a year earlier. The Taipei-based automaker may have to overcome the damaged brand image of Mitsubishi Motors, which has recalled more than 800,000 faulty cars, trucks and vans this year in Japan, said analysts such as Herald Van Der Linde, head of research at UBS AG in Taiwan.

■ Acer reports Q2 profit drops

Acer Inc, Taiwan's third-largest computer company by market value, has reported lower second-quarter profit. Net income fell to NT$1 billion (US$29 million) from NT$1.4 billion a year earlier. The earnings, derived by subtracting first-quarter figures from first-half results released today, were worse than analysts forecast. Acer has been selling shares it holds in other companies, such as Taiwan Semiconductor Manufacturing Co (台積電), to help lift profit. It posted NT$947 million in profit from asset sales in the second quarter last year, according to Bloomberg data. First-half net income increased to NT$2.4 billion, or NT$1.15 per share, from NT$2 billion, or NT$1.98, a year earlier. Sales rose 88 percent to NT$53.5 billion.

■ Lite-On profit climbs 19%

Lite-On Technology Corp (光寶科技), Taiwan's largest maker of computer monitors, said first-half profit rose 19 percent on sales growth of 71 percent. Net increased to NT$3.7 billion (US$109 million), or NT$1.70 a share, from NT$3.1 billion, or NT$1.43, a year earlier, the company said in a faxed statement. Sales totaled NT$75.8 billion. Operating profit rose almost two-thirds to NT$2.5 billion. Shipments of LCD monitors tripled in the second quarter to 1.5 million.

■ Kong to visit US, Europe

Kong Jaw-sheng (龔照勝), chair-man of the Financial Supervisory Commission, is scheduled to visit Europe and the US next month to try to drum up overseas investment, a Chinese-language newspaper reported yesterday. Kong will address an industry seminar in New York attended by representatives from the top 100 financial groups in the US. He may also visit US Securities and Exchange Commission Chairman William Donaldson. The trip will be Kong's first overseas since taking over the new post in July. Kong headed Credit Suisse First Boston's operations in Taiwan until 2002.

■ Nokia wins Taiwan 3G order

Nokia Oyj, the world's biggest mobile-phone maker, won an order to build faster wireless networks from Taiwan Cellular Corp (台灣大哥大). Nokia has begun delivering the equipment and the system will be ready for service in the first quarter of next year the Finland-based company said in a statement.

■ NT dollar trades lower

The New Taiwan dollar Monday traded lower against its US counterpart, declining NT$0.014 to close at NT$34.079 on the Taipei foreign exchange market. Turnover was US$408 million.

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