Evergreen Group (長榮集團) yesterday forecast that its three major subsidiaries would benefit from the quickening pace of the global economy’s recovery this year.
“We remain bullish about the transportation sector’s outlook for the year,” Evergreen Group vice chairman Bronson Hsieh (謝志堅) told a media briefing, citing the IMF’s latest forecast, which put the rate of global economic growth at 3.7 percent this year.
Compared with its previous estimate of 3.1 percent growth, the fund’s more recent forecast of a 3.7 percent expansion indicates a likely pick-up in global trade and private consumption, which would in turn benefit Evergreen’s subsidiaries, Hsieh said.
Strengthening global trade could drive up sales at Evergreen Marine Corp (長榮海運) and Evergreen International Storage & Transport Corp (長榮國際儲運), while a higher rate of private consumption would boost passenger business for EVA Airways Corp (長榮航空), he added.
Total consolidated sales of the group’s two major companies — Evergreen Marine and EVA Airways — are forecast to exceed NT$280 billion (US$9.22 billion) this year, compared with NT$263.36 billion last year, an expected increase that Hsieh attributed to the expansion of capacity at the firms.
Evergreen Marine is to welcome a total of 18 new vessels this year and eliminate nine lower-efficiency ships, while EVA Airways is scheduled to receive three Boeing Co 777-300ER aircraft this year, which could help improve its passenger volume in the second half of the year.
EVA chairman Chang Kuo-wei (張國煒) said the carrier will use the new airplanes on its routes to the US and expects the craft to begin contributing to revenue in the second half.
Despite the fleet expansion, the nation’s second-largest airline has no plans to enter the low-cost carrier sector, Chang said.
Although Rivals China Airlines Ltd (中華航空) and TransAsia Airways Corp (復興航空) are gearing up to launch low-cost flights, EVA plans to stay focused on its long-haul services, Chang said.
EVA is also set to take delivery of more B777-300ER aircraft over the next two years and plans to launch new routes to the US next year, with more flights to Chicago or Houston, he added.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS