HTC boosted by U sales
HTC Corp (宏達電) yesterday reported consolidated revenue of NT$5.2 billion (US$170.16 million) for last month, a 25.41 percent increase year-on-year and 11.58 percent month-on-month due to rising demand for its new flagship U smartphones. The U series, which are priced up to NT$28,900 each, debuted in Europe, the Middle East and China last month. In the first quarter of the year, HTC’s revenue totaled NT$14.53 billion, down 1.96 percent from NT$14.82 billion in the same period last year, a filing with the Taiwan Stock Exchange said.
Lite-On posts higher revenue
Electronic components maker Lite-On Technology Corp (光寶科技) yesterday posted consolidated revenue of NT$19.1 billion for last month, up 19 percent month-on-month and 4 percent year-on-year. Optoelectronics, which contributed 26 percent share of the firm’s total sales, posted annual growth of about 20 percent last month, while information technology accounted for 52 percent of its sales, annual growth of more than 10 percent, Lite-On said in a statement. Thanks to stable demand from its core clients, the firm’s cumulative sales in the first three months of the year were NT$51.35 billion, a 3 percent year-on-year increase, it said.
Outlook for firms stable
The outlook for the nation’s securities firms remains stable this year, underpinned by good capital buffers, adequate risk management and ample market liquidity, Taiwan Ratings Corp (中華信評) said in a report yesterday. “The creditworthiness of Taiwan securities firms should remain stable this year, despite challenging operating conditions,” Taiwan Ratings credit rating analyst Eunice Fan (范維華) said in the report. “These include sluggish equity market turnover, global capital market volatility and moderate economic growth in Taiwan.” Earnings at securities firms are likely to remain closely tied to the nation’s volatile equity market and remain at the low end of the range recorded over the past few years, Taiwan Ratings said. Securities firms saw their profits decline by about 25 percent last year after a 16 percent fall in 2015.
Reserves fall US$135m
The central bank’s foreign-exchange reserves stood at US$437.53 billion last month, a decrease of US$135 million month-on-month, the bank said in a statement yesterday. The central bank said the decline came as an increase in foreign assets held by domestic investors offset returns from its management of the reserves. Last month, the New Taiwan dollar appreciated by 1.04 percent against the greenback and by 6.4 percent in the first quarter, central bank data showed.
Growth is stable: survey
The services sector showed a stable growth in February, with an index gauging industry sentiment declining moderately from the previous month, according to a survey conducted by the Commerce Development Research Institute (商業發展研究院). The survey showed that the index fell to 103, down two points from January, the Taipei-based think tank said. The index was likely to edge down again last month, when Taiwan entered the traditional low season for tourists and exports, but the sentiment might improve this month as the four-day Tomb Sweeping Day holiday could offer a much-needed boost to the tourism and retail industries, the institute said.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the