Thu, May 04, 2017 - Page 12 News List

Tatung said to be in profit for first time in two years

By Ted Chen  /  Staff reporter

Tatung Co (大同), a home appliances brand, yesterday posted net income of NT$93 million (US$3.1 million) for the first quarter, ending nine consecutive quarters of operating losses, media outlets reported, citing a company statement.

Earnings per share were NT$0.4, the statement said.

While Tatung has yet to file its financial statement for the quarter with the Taiwan Stock Exchange, data from the exchange showed that the firm’s sales in the January-to-March period had fallen 5.62 percent annually to NT$18.54 billion.

The earnings announcement came ahead of the 99-year-old company’s annual general meeting, which is to take place on Thursday next week amid an ongoing management feud and proxy vote battle.

Following prolonged operating losses, a faction has been seeking to wrest control of the firm from the management team led by heirs of Tatung’s founding Lin (林) family, who have been accused of mismanagement, as well as fraud and embezzlement.

The company said that its profitability and financial condition have improved significantly as it strengthens its core business and scales back on loss-making ventures, adding that flat-panel display subsidiary Chunghwa Picture Tubes Ltd (中華映管) has also seen improvements to its bottom line.

In addition, Tatung said that it would continue to develop its solar power systems venture, including a government program to install solar panels on factory rooftops, at reservoirs, ponds and garbage dumps, and strives to install 80 megawatts of solar energy capacity.

The company has listed solar power as its most promising earnings engine, saying that it aims to invest NT$6 billion in the technology and asking shareholders for their support.

Tatung shares yesterday fell 2.71 percent to NT$10.75, while Chunghwa Picture Tubes shares fell 2.21 percent to NT$1.33.

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