Formosa Plastics Corp (FPC, 台塑), the nation’s largest producer of polyvinyl chloride, yesterday said its net profit last quarter reached NT$3.1 billion (US$103.4 million), mainly due to investment income.
The company returned to profit in the June quarter, compared with a loss of NT$1.14 billion in the same period last year, because of contributions from its holding in Formosa Petrochemical Corp (FPCC, 台塑石化), which swung into black because of higher oil prices.
However, on a quarterly basis, net profit last quarter was still lower than the NT$5.5 billion recorded a quarter ago. Formosa Plastics attributed it to lower earnings contribution from FPCC.
Formosa Plastics did not fare well in its core businesses, with operating profit declining to NT$1.28 billion last quarter from NT$1.77 billion the previous year, but up from NT$539.43 million the previous quarter, according to a company filing with the stock exchange.
A company official, who declined to be named, said by telephone that market demand has shown no sign of a recovery and he remains cautious about the outlook this quarter.
Jih Sun Securities Co (日盛證券) analyst Stephen Wan (萬力實) said he expected Formosa Plastics to see revenue decline 2.68 percent to NT$54.78 billion this quarter from last quarter, but rise 13.96 percent from the third quarter last year.
The company’s net profit is forecast to reach NT$6.59 billion this quarter, up 68.16 percent from the previous quarter, but down 18.74 percent year-on-year, with earnings per share of NT$1.08, Wan said in a note last week.