Thu, Jul 12, 2012 - Page 14 News List

Business Breifs

Staff writer, Agencies

TAIEX recoups early losses

The local bourse recouped early losses yesterday as bargain hunters became active in picking up market laggards, helping the index to end in positive territory, dealers said.

However, turnover remained thin as many investors kept to the sidelines amid worries over corporate earnings after US-based chip manufacturing equipment provider Applied Materials Inc and chip maker Advanced Micro Devices Inc sounded the alert over their earnings outlooks, they said.

The weighted index closed up 6.56 points, or 0.09 percent, at 7,257.91, on turnover of NT$63.42 billion (US$2.12 billion).

Acer revenues rise 24%

Acer Inc (宏碁), the world’s No.4 PC brand, posted the best monthly revenue since September of last year last month. Revenue grew 24 percent to NT$39.75 billion, from NT$32.11 billion in May, according to Acer’s filing to the Taiwan Stock Exchange on Tuesday.

That was an 24.46 percent increase from NT$31.94 billion in June of last year. In the April-to-June period, Acer’s revenue rose 0.66 percent to NT$97.13 billion, compared with NT$96.49 billion in the first quarter of this year.

Chunghwa Telecom EPS drops

Chunghwa Telecom Co (中華電信), Taiwan’s largest telecoms service provider, on Tuesday reported earnings per share (EPS) for last month of NT$0.32, a year-on-year drop of 42.9 percent in recognition of NT$1.26 billion in land losses after the company adopted a new accounting system.

Chunghwa Telecom posted unconsolidated revenue of NT$15.68 billion last month, a drop of 4.1 percent from the same period of last year, after adopting the accounting method that is in line with the International Financial Reporting Standards (IFRS), which are already in use in the EU and other countries.

All publicly listed companies in Taiwan are required to switch to the IFRS system from next year, according to regulations listed on the stock exchange’s Web site.

The firm also noted that revenues from mobile telecommunications last month were down by an annual 3.5 percent due to a higher base period in the same month of last year, which was boosted by strong smartphone sales.

Dragon Steel obtains loan

Dragon Steel (中龍鋼鐵), a subsidiary fully owned by state-owned China Steel Corp (中鋼), yesterday obtained NT$35 billion syndicated loan arranged by the Bank of Taiwan. A total of 18 banks are to provide the loan.

The proceeds will be used to buy new equipment and to fund the construction of new furnances, which will help boost Dragon Steel’s competitiveness.

Dragon Steel’s revenue grew 93 percent to NT$73.8 billion last year from 2010.

Taichung group inks pact

The Taichung Tourism Association yesterday signed a cooperation agreement with a tourism organization based in the Tianjin, China, in an effort to promote tourism exchanges between the two cities.

Taichung Deputy Mayor Hsiao Chia-chi (蕭家淇) and Tianjin Mayor Huang Xingguo (黃興國), who is leading a city delegation on a six-day visit to Taiwan, witnessed the signing, which took place at the Jenn Lann Temple in the city’s Dajia District.

NT dollar gains ground

The New Taiwan dollar rose against the US dollar yesterday, up NT$0.011 to close at NT$29.974 as bargain hunting emerged to help the local currency end a four-day losing streak, dealers said. However, turnover remained low as many traders stayed on the sidelines amid lingering concerns over the global economy, they said.

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