Weak US retail could hurt
The weak spring sales of major retail brands in North America — including JC Penny Co, Nordstrom Inc, Kohl’s Corp, Macy’s Inc, The Gap Inc and Lululemon Athletica Inc — might have negative implications for Taiwan’s textile and footwear sector, Macquarie Capital Securities Ltd said in a client note on Monday. “We expect suppliers’ slower revenue growth and margin pressure from brand and retailer clients to continue in the remainder of the year,” Macquarie’s Taipei-based analysts led by Corinne Jian (簡秋萍) wrote in the note, saying that US consumers spending patterns are changing from apparel to entertainment and to home beautification. Shares of apparel maker Eclat Textile Co (儒鴻) fell 0.85 percent and textile supplier Makalot Industrial Co (聚陽) dropped 0.64 percent in Taipei trading yesterday, while footwear maker Feng Tay Enterprise Co (豐泰鞋業) rose 2.38 percent.
Sanyang upbeat on Q2
Automobile and motorcycle manufacturer Sanyang Industry Co (三陽工業) yesterday said sales would increase this quarter from the previous quarter, as its corporate restructuring efforts bear fruit. Vice chairman and president Wu Chin-yuan (吳清源) said the company’s share of the domestic motorcycle market is expected to reach 25 percent by the end of this year, compared with 22.8 percent in the first quarter. Automobile sales by the company, which assembles Hyundai Motor Co’s Tucson cars, are forecast to hit as high as 16,000 units by the end of the year, the highest in nearly five years, Wu said. Shares of Sanyang rose 0.25 percent yesterday in Taipei trading.
FOOD AND BEVERAGE
Q1 revenue rises 3.1%
The revenue of the nation’s food and beverage sector totaled NT$111 billion (US$3.4 billion) in the first quarter, up 3.1 percent from a year earlier and a new high, the Ministry of Economic Affairs said on Monday. Thanks to the launch of new restaurant brands and a growing focus on leisure, the January-to-March quarter was also the 28th consecutive quarter in which the sector posted an annual increase in revenue, ministry data showed. The ministry said it expected the growth momentum to continue, forecasting full-year revenue of NT$430 billion for this year, which would be 1.4 percent higher than last year’s NT$424.1 billion.
New Boeing 777 for CAL
China Airlines Ltd (CAL, 中華航空) on Monday took delivery of the world’s first cobranded Boeing 777 aircraft at a Boeing production facility in Washington state. The new Boeing 777 300ER aircraft bears the names and logos of CAL and Boeing on its fuselage, while CAL’s plum blossom logo is also on the tail. The new aircraft, CAL’s 10th 777 from Boeing, will be used on routes from Taipei to Europe and the US starting later this month, the airline said.
ANZ cuts jobs in Australia
Australia & New Zealand Banking Group Ltd (ANZ) is eliminating about 200 jobs in its Australian unit as lending growth slows in a subdued economy. The reductions will be largely in Melbourne and affect managerial and back-office roles in areas such as marketing and project management, spokesman Stephen Ries said in an e-mail yesterday. ANZ is also slashing its Asian and institutional-banking workforce as part of a move to exit low-returning assets.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
The latest US government action against Huawei Technologies Co (華為) takes direct aim the company’s HiSilicon (海思) chip division — a business that in over the past few years has become central to China’s ambitions in semiconductor technology, but is now to lose access to tools that are central to its success. That could make it the most damaging measure by the US yet against a Chinese company. On Wednesday, US officials told reporters that the Huawei’s chip division functioned as a “tool of strategic influence” for the Chinese Communist Party. Huawei, for its part, denounced the US allegations and called the