Formosa Plastics’ revenue soars

By Camaron Kao  /  Staff reporter

Fri, Jun 07, 2013 - Page 13

Formosa Plastics Corp (台塑), the nation’s largest producer of polyvinyl chloride, yesterday reported that revenues grew 28.36 percent last month from a year ago, the highest among the four major units of Formosa Plastics Group (台塑集團), because of rising sales volumes.

Formosa Plastics Corp, the group’s flagship company, registered revenue of NT$19.98 billion (US$669.96 million) last month, according to a filing to the Taiwan Stock Exchange.

Last month’s figure was 11.33 percent higher than the previous month.

“We benefited mostly from an increase in sales volume last month. Our clients started increasing their orders as product prices showed signs of bottoming out,” an official at the company, who declined to be named, said by telephone.

The official said the high year-on-year revenue increase was also caused by a low base the previous year, when the Ministry of Economic Affairs demanded that the company stop work at its factories for safety inspections.

The company is likely to report higher revenue this quarter than a quarter ago because of more working days, and the revenue this quarter would be higher than a year ago because the base level last year was low, he said.

Last month, revenue at Nan Ya Plastics Corp (南亞塑膠), the nation’s largest plastics maker, rose 6.05 percent to NT$25.82 billion, from NT$24.35 billion a year ago, and 3.05 percent from NT$25.06 billion the previous month, the company said in a filing to the Taiwan Stock Exchange.

“Sales volumes of our petrochemical products and electronic materials were higher than a month ago, while the sales volume of petrochemical products is higher than a year ago,” Nan Ya general manager Wu Chia-chau (吳嘉昭) said by telephone.

Wu forecast that the company’s sales this quarter would remain the same or decline slightly from the previous quarter because of annual maintenance work at its ethylene glycol factory.

Formosa Chemicals & Fibre Corp (台灣化學纖維), which produces aromatics and styrenics, registered revenue of NT$38.73 billion last month, up 13.49 percent from NT$34.13 billion a year ago and 4.34 percent from NT$37.12 billion in April, according to a filing to the Taiwan Stock Exchange.

Formosa Petrochemical Corp (台塑石化), the nation’s only listed oil refiner, saw its revenue drop 1.44 percent to NT$65.71 billion from NT$66.67 billion a year ago and 4.12 percent from NT$68.53 billion in April, according to a filing to the Taiwan Stock Exchange.