Sat, Jan 08, 2011 - Page 11 News List

Formosa Plastics sees Q4 net rise on China demand

Bloomberg

Formosa Plastics Corp (台塑) and other units of the nation’s largest diversified company showed gains in fourth-quarter net income as China’s expanding economy boosted demand for chemicals and plastics.

Net income at Formosa Plastics, the nation’s biggest maker of polyvinyl chloride, rose 66 percent in the three months ending Dec. 31, to NT$12.8 billion (US$437 million).

Profit at Formosa Petrochemical Corp (台塑石化), the nation’s only publicly traded oil refiner, rose 29 percent to NT$13.2 billion. Both companies are units of Formosa Plastics Group (FPG, 台塑集團).

China’s growing economy bolstered demand for petrochemicals including polyvinyl chloride (PVC), used in construction and consumer goods, such as handbags and shoes. China is FPG’s biggest overseas market.

“China’s economy is booming,” said Danny Ho (何耀仁), a Taipei- based analyst at Yuanta Securities Co (元大證券), who has a “buy” rating for Formosa Plastics. “Demand for petrochemicals should continue to rise.”

Plastics processor Nan Ya Plastics Corp’s (南亞塑膠) profit rose 13 percent to NT$8.39 billion in the fourth quarter. Chemical producer Formosa Chemicals & Fibre Corp’s (台灣化纖) net income was up by 64 percent, at NT$13.5 billion.

Formosa Plastics reported net income for last year of NT$46 billion, or NT$7.51 per share, the company said in a statement to the Taiwan Stock Exchange yesterday, citing unaudited figures. Formosa Petrochemical posted full-year profit of NT$41.2 billion, or NT$4.33 per share, the oil refiner said in a statement yesterday.

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