Tue, Aug 18, 2015 - Page 14 News List

Taiwan Business Quick Take

Staff writer, with CNA

FINANCE

COTA acquisition fails

Local financial service provider Waterland Financial Holdings Co (國票金控) yesterday said that its intention to acquire COTA Commercial Bank (三信銀行) has failed. Waterland was unable to purchase the required 256 million shares — or 51 percent share — of COTA, at NT$17.8 per share, during the period between June 29 and yesterday. Waterland only bought 83 million shares, it said in a statement filed with the Taiwan Stock Exchange. Waterland’s hostile acquisition failed as it faced opposition from COTA. The bank’s board rejected the acquisition after a meeting on July 1.

STEELMAKERS

China Steel profit plunges

China Steel Corp (中鋼), the nation’s biggest steelmaker, yesterday reported NT$224 million (US$6.92 million) in pre-tax profit for last month, plunging 84 percent from a month earlier as prices drifted into a non-stop downward spiral on oversupply. In June, China Steel made NT$1.44 billion in pre-tax profit. Revenue slid 0.3 percent to NT$23.94 billion last month, compared with NT$24.02 billion in June, according to a company statement. Meanwhile, shipments jumped 17 percent to 922.89 tonnes last month, from 788.9 tonnes in June. In the first seven months, the steelmaker’s pre-tax profit stood at NT$10.83 billion.

PANEL MAKERS

Global shipments down

Global TV panel shipments dropped 1 percent last month to 22.31 million units from 22.6 million in June due to sluggish TV demand, with local panel makers suffering a faster decline, market researcher TrendForce Corp (集邦科技) said in a report released yesterday. Taiwan’s two biggest LCD panel makers, Innolux Corp (群創) and AU Optronics Corp (友達光電), saw their TV panel shipments fall 2 percent and 18 percent respectively, capped by capacities. The Taipei-based researcher expected TV panel shipments to be flat in the current quarter from last quarter, while shipments are expected to decrease 10 percent next quarter on persistent weak demand and piling inventory from China.

AVIATION

CAL dividend approved

China Airlines (CAL, 華航), the nation’s biggest airliner, yesterday said that its board has approved a cash dividend totaling NT$1.66 billion, after selling the company’s 14 percent stake in Abacus International Pte Ltd. CAL last week reported net income of NT$1.12 billion, or NT$0.20 per share, for last quarter, lower than the NT$1.85 billion and NT$0.35 recorded in the first quarter. Earnings in the first half were tallied at NT$2.97 billion or NT$0.55 per share, improving markedly over losses of NT$0.72 per share recorded during the same period last year.

STOCK MARKET

Pre-tax profits soar

Taiwan-listed companies, excluding financial holdings firms, reported an overall 18.43 percent average increase in pre-tax profits for the first half of 2015 thanks to good results in the semiconductor, electronics and plastics sectors, the Taiwan Stock Exchange Corp (TWSE) said on Monday. The companies’ pre-tax profits totaled a combined NT$902.4 billion (US$27.66 billion) in the first six months of 2015, compared with NT$762 billion a year earlier. Their January-June revenue grew by 0.98 percent year-on-year to NT$12.35 trillion, the TWSE said in a statement. Among the 785 companies listed in Taiwan, 596 reported profits in the first half of this year.

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