Formosa Chemicals & Fibre Corp (台灣化纖), one of the main aromatics and styrenics suppliers in Asia, on Friday said its board had approved a proposal to distribute a cash dividend of NT$7 per common share, the highest since 2011 when it paid NT$7.5 to shareholders.
The company’s proposed cash dividend, if approved by shareholders on June 15, would be 25 percent higher than the NT$5.6 that it paid the previous year.
Based on last year’s record-high earnings per share (EPS) of NT$9.3, the payout ratio is 75.27 percent. With the company’s shares closing at NT$110 on Friday, the proposed dividend represents a yield of 6.36 percent.
The company said its board also gave the green light to issue up to NT$6.5 billion in unsecured corporate bonds to repay debt, fund future expansion and strengthen its working capital, a company filing with the Taiwan Stock Exchange said.
Formosa Chemicals is the second major unit of Formosa Plastics Group (台塑集團) to report a high dividend on last year’s strong performance.
Affiliate Formosa Petrochemical Corp’s (台塑石化) board on Thursday last week approved a cash dividend of NT$6.3 per share, the highest since 2008 when it paid NT$6.7 per share.
Based on last year’s record EPS of NT$8.42, the refiner’s payout ratio is 74.82 percent, compared with the previous year’s 75.47 percent.
With its shares closing at NT$116 on Friday, Formosa Petrochemical’s proposed dividend translates into a yield of 5.43 percent, higher than local banks’ fixed-term deposit interest rates.
Formosa Plastics Corp (台塑), the flagship company of the industrial conglomerate and the nation’s largest maker of polyvinyl chloride resins, is scheduled to announce its dividend plans after a board meeting on Thursday, while the dividend policy of Nan Ya Plastics Corp (南亞塑膠), which manufactures plastic products, fiber products, electronic materials and petrochemical products, is to be made public after its board meeting on Friday.
If the two firms were to maintain similar payout ratios of about 74 percent to 75 percent, like their affiliates, Formosa Plastics would offer its shareholders a cash dividend of NT$5.61 to NT$5.69 per share, while Nan Ya Plastics might pay NT$5.09 to NT$5.15 per share, based on last year’s EPS of NT$7.58 and NT$6.87 respectively.
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)
SCATTERED: Production would be dispersed among a number of countries, which would bring an end to so-called world factories, Hon Hai chairman Young Liu said Decentralized production would be the new focus in manufacturing, Hon Hai Precision Industry Co (鴻海精密) chairman Young Liu (劉揚偉) yesterday told an online forum held by the Market Intelligence & Consulting Institute (MIC, 產業情報研究所). “The COVID-19 pandemic exerted a heavy impact on supply chains as well as production ... [production] would no longer be concentrated in solely one country, this is the end of what we used to call world factories,” Liu said during a panel discussion hosted by MIC director Victor Tsan (詹文男). As the US and China continue to dominate and sway international relations, the rest of the world is