Yulon Motor Co (裕隆) yesterday posted deeper quarterly losses of NT$1.57 billion (US$51.46 million) last quarter, as mounting economic uncertainty worldwide pared car sales, while assets impairment worsened.
Last quarter’s losses widened from NT$1.19 billion in the second quarter and a net profit of NT$238.52 million in the third quarter last year, the automaker’s financial statement showed.
Yulon attributed the deterioration to higher impairment losses from its own-brand car manufacturing arm Luxgen Motor Co (納智捷), and losses from an overhaul to a residential-commercial complex development project in New Taipei City’s Sindian District (新店).
Photo: CNA
Aggregate losses in the first three quarters of this year totaled NT$2.36 billion, compared with a net profit of NT$1.12 billion in the same period last year.
Losses per share were NT$1.7 in the first three quarters, compared with earnings per share of NT$1.11 a year earlier.
The Miaoli-based company said it had booked NT$4.5 billion in impairment losses as of Sept. 30 and expects to book more as the value of its automotive molds continue to depreciate, putting the firm at risk of posting full-year losses for the first time in 24 years.
A 10,700 drop in vehicle sales in Taiwan and China contributed to a 4 percent annual decline in revenue to NT$62.83 billion in the first three quarters of this year, Yulon said in a statement.
The sluggish momentum is forecast to extend into this quarter, Yulon said, as overall vehicle sales in Taiwan are predicted to contract 1.9 percent to 415,000 units this year, down from 423,000 last year, due to diminishing replacement demand as well as economic uncertainty ahead of the presidential elections in Taiwan and the US-China trade dispute, it added.
In China, stricter environmental and emission rules have affected vehicle sales this year, which China Association of Automobile Manufacturers forecasts would dip 7.4 percent annually to 26 million units, the lowest since 2015, Yulon said.
However, Yulon Nissan Motor Co (裕隆日產), its car distributing arm, remained a cash cow, reporting a net profit of NT$1.6 billion for last quarter, more than double its earnings of NT$726.25 million in the same period last year.
Earnings per share climbed to NT$6.59 from NT$4.68.
Its net profit in the first three quarters of the year jumped 29.69 percent to NT$4.98 billion from NT$3.84 billion a year earlier.
MARKET LEADERSHIP: Investors are flocking to Nvidia, drawn by the company’s long-term fundamntals, dominant position in the AI sector, and pricing and margin power Two years after Nvidia Corp made history by becoming the first chipmaker to achieve a US$1 trillion market capitalization, an even more remarkable milestone is within its grasp: becoming the first company to reach US$4 trillion. After the emergence of China’s DeepSeek (深度求索) sent the stock plunging earlier this year and stoked concerns that outlays on artificial intelligence (AI) infrastructure were set to slow, Nvidia shares have rallied back to a record. The company’s biggest customers remain full steam ahead on spending, much of which is flowing to its computing systems. Microsoft Corp, Meta Platforms Inc, Amazon.com Inc and Alphabet Inc are
Luxury fashion powerhouse Prada SpA has acknowledged the ancient Indian roots of its new sandal design after the debut of the open-toe footwear sparked a furor among Indian artisans and politicians thousands of miles from the catwalk in Italy. Images from Prada’s fashion show in Milan last weekend showed models wearing leather sandals with a braided design that resembled handmade Kolhapuri slippers with designs dating back to the 12th century. A wave of criticism in the media and from lawmakers followed over the Italian brand’s lack of public acknowledgement of the Indian sandal design, which is named after a city in the
The US overtaking China as Taiwan’s top export destination could boost industrial development and wage growth, given the US is a high-income economy, an economist said yesterday. However, Taiwan still needs to diversify its export markets due to the unpredictability of US President Donald Trump’s administration, said Chiou Jiunn-rong (邱俊榮), an economics professor at National Central University. Taiwan’s exports soared to a record US$51.74 billion last month, driven by strong demand for artificial intelligence (AI) products and continued orders, with information and communication technology (ICT) and audio/video products leading all sectors. The US reclaimed its position as Taiwan’s top export market, accounting for
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
RSS