State-run firms begin year with profits

The total pre-tax profits of the nation's six state-run companies amounted to NT$2.21 billion (US$66.88 million) during the first two months of this year, according to statistics released yesterday by the Ministry of Economic Affairs' Enterprise Commission.

Taiwan Power Co (台電), however, went into the red with a total loss of NT$2.54 billion during this period due to increases in expenditures for power purchases and soaring fuel prices.

CPC, Taiwan (台灣中油) topped the list with NT$3.63 billion in pre-tax profits, followed by CSBC, Taiwan (台灣國際造船) with NT$498 million, Taiwan Water Corp (台灣自來水) with NT$442 million, Taiwan Sugar Corp (台糖) with NT$150 million and Aerospace Industrial Development Corp (漢翔) with NT$26 million.

Meanwhile, the number of mergers last year doubled to 203 from the year before, with the value of businesses involved totaling NT$126.5 billion (US$3.83 billion), the ministry reported yesterday.

There were 736 mergers, worth NT$342.41 billion since the law governing business mergers took effect in 2002, the ministry said.

By scale, 58.1 percent, or 118 cases, completed last year involved companies with founding capital of NT$500 million or less.

Another 38 merger cases, or 18.7 percent, involved firms with founding capital of NT$2 billion or more, the statistics showed.

Electronic companies topped the merger list, with 36 mergers.