Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, said on Wednesday that it expects its sales this quarter to be flat from last quarter’s NT$80.5 billion (US$2.7 billion) because of fewer work days and larger sales volume of ethylene glycol and polyester.
Nan Ya chairman Wu Chia-chau (吳嘉昭) said the company’s sales of ethylene glycol will post sequential increase this quarter despite declining price, as four of its ethylene glycol plants are operating at a high utilization rate this quarter.
In addition, sales of polyester will also increase this quarter from last quarter because of higher sales to the US triggered by the increased textile production there, Wu said.
“US textile companies started replenishing their inventories on Jan. 2 after the Christmas holidays,” Wu said, expecting Nan Ya’s polyester sales to rise this month from last month.
However, the quarterly increase forecasts for ethylene glycol and polyester sales will be offset by declining sales of plastics and electronic materials this quarter, he said.
Although downstream electronic companies started buying and increasing their inventory level this month, sales of plastics and electronic materials this quarter will still fall as Nan Ya’s factories in China will close for 10 days for the Lunar New Year holidays, Wu said.
The company posted a net profit of NT$25.26 billion, or NT$3.19 per share, for last year, up 491.7 percent from NT$4.27 billion, or NT$0.54 per share, in 2012.
Operating profit last year rose 13.3 percent year-on-year to NT$14.33 billion, thanks to higher sales volume of its petrochemical products and higher prices of plastics, while nonoperating profit increased to NT$15.93 billion, compared with losses of NT$7.04 billion the previous year dragged down by loss-making DRAM subsidiary, Nanya Technology Corp (南亞科技), according to the company.
Nan Ya, which holds a 37.83 percent stake in Nanya Technology, booked income of NT$3.09 billion from the DRAM chipmaker last year, Wu said.