CSC profit, shipments drop
China Steel Corp (CSC, 中鋼), the nation’s biggest steelmaker, yesterday said consolidated pre-tax profits plunged 27 percent to NT$2.06 billion (US$65.6 million) last month from NT$2.86 billion in January. Revenue shrank 20 percent to NT$23.58 billion last month, compared with NT$29.4 billion in January. Shipments of carbon steel tumbled about 20 percent sequentially to 644,118 tonnes last month, compared with 824,916 tonnes in January.
Faraday to boost returns
Faraday Technology Corp (智原), a fabless chip designing service and silicon patent provider, yesterday said its board approved a plan to cancel 40 percent of its capital shares in a bid to boost shareholders’ return on equity. After canceling 166 million shares, Faraday will have 248.5 million capital shares, according to a statement the company submitted to the Taiwan Stock Exchange. The company plans to pay back NT$4 per share to shareholders. The firm is scheduled to hold an annual shareholder’s meeting on June 9 to approve the capital reduction plan.
Merrill Lynch hosts forum
Bank of America Merrill Lynch is to host an investors’ conference at the Far Eastern Plaza Hotel in Taipei beginning today that will discuss the next growth drivers in the dynamic technology industry. The “Taiwan, Technology & Beyond Conference — Catch A Wave,” scheduled to run from today to Thursday, is in its 18th year and is expected to bring together senior executives from about 130 domestic and foreign companies representing both high-tech and non-high-tech sectors. Among the scheduled speakers are executives from Taiwan-listed technology companies, such as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), contract laptop maker Compal Electronics Inc (仁寶), touchpanel maker TPK Holding Co (宸鴻), DRAM memory chipmaker Inotera Memories Inc (華亞科技) and wireless carrier Chunghwa Telecom Co (中華電信), according to Merrill Lynch. The three-day conference is set to open today with a keynote speech by Merrill Lynch semiconductor analyst Daniel Heyler, who will discuss “the next growth wave in mobile.”
TAIEX falls on electronics
The TAIEX closed lower yesterday as foreign institutional investors continued to pull their funds out of large-cap electronics heavyweights. The TAIEX fell 66.44 points, or 0.69 percent, to close at the day’s low of 9,512.91 after reaching a high of 9,590.76. Turnover was NT$81.07 billion. The market opened higher following early gains in other Asian markets, but it fell into negative territory shortly before 9:30am and continued falling the rest of the session on weakness in the electronics sector. The bellwether electronics sub-index fell 1.06 percent, the biggest decline posted by any sector yesterday. Taiwan Semiconductor Manufacturing Co, the heaviest weighted stock in the market, fell 2.01 percent to close at NT$146.0, while IC design firm MediaTek Inc (聯發科) tumbled 3.57 percent to close at NT$432.0. Foreign institutional investors sold a net NT$9.04 billion in shares, much of it coming in the electronics sector. They were net sellers of nearly 10.7 million TSMC shares and nearly 7.9 million MediaTek shares during the session, stock exchange data showed.