Wed, Aug 12, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer

COMPUTERS

Quanta Q2 earnings slide

Quanta Computer Inc (廣達) yesterday reported sliding earnings and profit margins last quarter from the first quarter, despite foreign-exchange hedging gains and higher revenue. Net income decreased 17.1 percent year-on-year and 8.1 percent quarter-on-quarter to NT$3.37 billion (US$105 million) in the second quarter, with earnings per share of NT$0.88, Quanta said in a statement. Revenue rose 22.3 percent quarterly to NT$251.01 billion, but gross margin declined from 5.08 percent to 4.37 percent and operating margin dropped from 1.82 percent to 1.78 percent, the company said. Analysts said the margins were weighed down by start-up costs and yield issues on manufacturing the Apple watch. The company said it made NT$455 million in foreign-exchange gains last quarter, following a loss of NT$152 million in the first quarter.

MANUFACTURING

Chi Mei profit plunges

Chi Mei Material Technology Corp (奇美材料), a supplier of LCD polarizers to panel maker Innolux Corp (群創光電), yesterday reported that net profit plunged 52.65 percent to NT$215.896 million last quarter, or NT$0.42 per share, following a 22.26 percent annual drop in revenue to NT$3.2 billion. The company said that revenue is likely to rebound in the fourth quarter and revenue for the second half will be higher than the first half, thanks to contributions from new Chinese customers and higher orders. In a separate filing to the Taiwan Stock Exchange, Chi Mei Material said that its board had agreed to seek a syndicated loan of US$100 million to finance the needs of its new factories in Kunshan, China. The five-year loan will be backed by Bank of Taiwan (臺灣銀行), Chang Hwa Commercial Bank (彰化銀行), Taipei Fubon Bank (台北富邦銀行) and E.Sun Commercial Bank (玉山銀行), the company said.

TAXES

Revenue up 0.7% in July

The national treasury collected NT$104.8 billion in tax revenue last month, up 0.7 percent from a year earlier, as business and commodity tax gains more than offset losses in securities transaction levy, the Ministry of Finance said yesterday. The business tax increased 5.5 percent year-on-year to NT$62.1 billion while the commodity tax grew 13.3 percent to NT$17.6 billion, the ministry said. The increase muted the losses of NT$2.4 billion in the securities transaction tax, which stood at NT$7.2 billion last month, it said. As of last month, tax revenues totaled NT$1.29 trillion, up 9 percent from the same period last year and enough to meet the budget target of 8.6 percent, the ministry said.

AVIATION

EVA boss not leaving

EVA Airways Corp (長榮航空) chairman Chang Kuo-wei (張國煒) is to remain at the helm of the carrier, the company said on Monday, contrary to an off-the-cuff comment he made on Facebook that hinted at resignation. Chang said that perhaps he should step down for his less-than-stellar leadership following massive flight disruptions as Typhoon Soudelor carved a path across Taiwan on Saturday. However, EVA spokesperson Nieh Kuo-wei (聶國維) said that Chang was merely expressing his deep apology and regret over disappointing passengers and crew members because of the disruptions. Last month, EVA performed better than its local peers by posting a 4.2 percent year-on-year increase and 16.3 percent month-on-month rise in sales to NT$12.8 billion.

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