EVA Airways Corp (長榮航空) saw its third-quarter net profit halve to NT$1.27 billion (US$41.6 million) from NT$2.59 billion a year earlier due to sluggish cargo business and the lingering effects of labor strikes.
Revenue fell 3.9 percent annually to NT$45.52 billion, which the airline blamed on weak air cargo demand amid US-China trade tensions and protests in Hong Kong.
The carrier announced the figures during an investors’ conference in Taipei on Thursday.
Passenger revenue fell from a year earlier, as it had not fully resumed normal flight schedules until July 20, after flight attendants launched strikes in late June, EVA said.
As a result, its available freighter tonne-kilometer (AFTK) and available seat kilometers (ASK), two indicators gauging its carrying capacity for goods and passengers, posted annual declines of 1.9 percent and 2.7 percent respectively for the first nine months of this year, EVA said.
EVA, the airline arm of Evergreen Group (長榮集團), posted cumulative net profit of NT$3.21 billion for the first three quarters, down 46.2 percent from NT$5.98 billion a year earlier. Earnings per share plunged from NT$1.33 to NT$0.67 over the period.
The carrier expects cargo business momentum this quarter to outperform the first three quarters, as demand is expected to increase ahead of the Christmas holiday season, EVA president Clay Sun (孫嘉明) said, adding that passenger business would grow mildly.
However, it would not be as good as last year, he said.
Still, Sun provided an upbeat outlook for next year, when five new Boeing 787-10 jets are to join the airline’s fleet.
The new airplanes would help improve the carrier’s AFTK and ASK by 8 percent and 13 percent respectively next year, he said.
Meanwhile, Evergreen Marine Corp (長榮海運), the shipping arm of Evergreen Group, returned to profit last quarter with net profit of NT$135 million, which still represented an annual decline of 80 percent from a net profit of NT$708 million a year earlier, corporate data showed.
The shipper posted annual revenue growth of 11 percent to NT$49.85 billion during the July-to-September period from NT$44.91 billion, attributable to rising freight volume.
Operational costs rose 10.45 percent year-on-year to NT$45.97 billion, from NT$41.62 billion, data showed.
Lower container spot rates on major routes reduced profits, the shipper said.
Evergreen Marine’s financial performance has been volatile this year, with double-digit percentage growth in net profit in the first quarter followed by a net loss in the second quarter, due to uncertainty in the global trade environment, it said.
However, overall, the company’s performance has improved from last year, with cumulative net profit of NT$340.39 million in the first three quarters, compared with a net loss of NT$398.75 million over the same period last year, the data showed.
FIVE NEW FABS: An acquisition of Siltronic would boost GlobalWafers’ market share from 17 to 30 percent, easily surpassing Japanese rival Sumco’s 25 percent GlobalWafers Inc (環球晶圓) yesterday said it is in final talks to acquire Germany-based Siltronic AG in a 3.75 billion euro (US$4.5 billion) deal, which might help it compete with its closest rival Sumco Corp of Japan. The acquisition would be the fifth for GlobalWafers since 2008, as it has grown to become the world’s No. 3 supplier of silicon wafers through such deals. GlobalWafers, which has a 17 percent market share, would see its market position greatly elevated to 30 percent when combined with Siltronic’s 13 percent, according to a presentation Siltronic gave to its investors at a quarterly conference in August. Sumco
With the speed cryptocurrency is emerging as the millennial generation’s alternative asset of choice in India, it is hard to imagine that just two years ago a couple of blockchain pioneers were briefly in police custody. Sathvik Vishwanath and Harish BV, cofounders of a then five-year-old start-up, were arrested in late 2018. No, they had not pulled off a shady initial coin offering. Their “crime” was that they put up a kiosk in a mall in Bangalore where customers could swap bitcoin, ether or ripple for cash or vice versa. That was the whole point of unocoin, their crypto token exchange.
CONCERNS: The bank would act if it noticed currency speculation, the governor said, but he did not comment on a likely trajectory of the NT dollar against the greenback The central bank would intervene in the market whenever necessary to help stabilize the New Taiwan dollar, central bank Governor Yang Chin-long (楊金龍) said yesterday, adding that it is concerned Taiwan might be placed on the US watchlist for currency manipulation. The Control Yuan recently sent letter inquiring about the central bank’s market regulation efforts, Yang told a meeting of the legislature’s Finance Committee on the NT dollar’s appreciation and property price hikes. “It is the central bank’s top responsibility to stabilize foreign exchanges,” he said. The central bank has often stepped in toward the end of trading sessions to moderate the NT
Qualcomm Inc expects global shipments of 5G smartphones to more than double to between 450 million and 550 million units next year from this year, driven by increasing 5G network deployment worldwide and broader adoption of 5G technology beyond smartphones, a company executive told a virtual news conference yesterday. The San Diego-based company said that more than five times more telecoms have commercially launched 5G services in the first 18 months of the 5G era, compared with wireless technology transitions to previous generations. The momentum is to pick up speed in 2022, with the shipment volume of 5G-ready smartphones projected to reach