The combined revenue of Formosa Plastics Group’s (FPG, 台塑集團) four major subsidiaries last month fell by a double-digit percentage point from a year earlier, as the COVID-19 pandemic weakened downstream demand and reduced average selling prices.
The consolidated revenue of Formosa Plastics Corp (台灣塑膠), Nan Ya Plastics Corp (南亞塑膠), Formosa Petrochemical Corp (台塑石化) and Formosa Chemicals & Fibre Corp (台灣化學纖維) totaled NT$76.57 billion (US$2.57 billion), a decline of 40.4 percent, the firms’ stock exchange filings on Friday showed.
On a monthly basis, their combined revenue was up 1.5 percent from April on the back of a 15.9 percent increase in revenue at Formosa Petrochemical, the nation’s only listed oil refiner.
It said its revenue grew 15.9 percent month-on-month to NT$25.69 billion, as sales in its refining business rose 25.2 percent and its naphtha business expanded 11.2 percent.
It attributed its strong refining business expansion to higher refining output and oil prices, while the growth in naphtha business was mainly due to a sales increase in olefins.
Compared with a year earlier, revenue fell 55.9 percent as the COVID-19 outbreak and a collapse in demand caused sales at the refining business to plunge 61.7 percent and those at the naphtha cracking business to tumble by 50.5 percent, Formosa Petrochemical said.
Nan Ya Plastics reported the smallest annual decrease in revenue of the four, down 21.7 percent to NT$19.42 billion, a drop of 4.86 percent from April.
“The COVID-19 pandemic had a continuous impact on global economics and led to a sluggish end market demand, dragging down sales volume and product prices,” Nan Ya Plastics said in its filing.
The company, whose lineup includes plastics, chemicals, polyesters and electronic materials, said revenue generated from its Taiwanese operations decreased 21.5 percent from a year earlier and revenue from its Chinese operations fell 15.17 percent, while the US revenue dropped 37.31 percent.
Flagship unit Formosa Plastics Corp reported revenue of NT$13.45 billion, down 29.2 percent annually as the prices of its major products fell by 19.58 percent from a year earlier.
Revenue was 8.8 percent lower, which Formosa Plastics attributed to a decline in sales of polyvinyl chloride amid lower demand in Europe and the US, falling sales of ethylene vinyl acetate used for shoes affected by the postponement of the Tokyo Olympics, as well as a decreased demand for polypropylene (PP) from customers.
Formosa Chemicals & Fibre’s reported revenue fell 31.7 percent year-on-year to NT$18.01 billion, a decline of just 0.7 percent from April.
Selling prices of its major product acetone remained steady on the back of epidemic prevention demand, it said.
However, the prices of other products were affected by COVID-19, lower oil prices and new production capacity in China, with the exception of the prices of phenol, acetone, acrylonitrile butadiene styrene and PP, it said.
SETTING AN EXAMPLE: The commission suspended the bank’s two top executives as ‘a warning to all banks,’ while the fine is the biggest to be given to a bank in a single case The Financial Supervisory Commission (FSC) yesterday fined E.Sun Commercial Bank (玉山銀行) NT$20 million (US$693,698) over a theft scandal and punished the bank’s two top executives. A customer relationship manager surnamed Pan (潘) at the bank’s branch in Kaohsiung’s Fengshan District (鳳山) stole NT$140 million from 41 clients over the past seven years, the commission said. Pan secretly transferred the stolen money to accounts belonging to her and her family members by using clients’ debit cards, passwords or documents that were stamped using the clients’ personal stamps between July 2013 and June this year, the commission said. The commission suspended Ben Chen (陳炳良), the
Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain the third-largest IC supplier this year, unchanged from last year, IC Insights said yesterday. IC designer MediaTek Inc (聯發科) is expected to become the 11th-largest, up from 16th last year, the semiconductor market research firm said. TSMC is expected to post US$45.42 billion in sales, up 31 percent from last year, IC Insights said in a report released on its Web site. TSMC’s sales growth is largely due to a surge in orders from Apple Inc and HiSilicon Technologies Co (海思半導體) — two of its major clients — which
HARD ASK: At a meeting held by the MOEA to talk about the RCEP trade deal, trade associations said that they expect the government to push for more free-trade deals Business representatives yesterday urged the government to slow the appreciation of the New Taiwan dollar, saying that some Taiwanese industries have been undercut by rivals due to unfavorable foreign exchange rates. The government should also assist local industries to expand their domestic market, and push for more bilateral trade deals so that Taiwanese companies can enjoy zero or preferential tariffs on exports, following the nation’s exclusion from the Regional Comprehensive Economic Partnership (RCEP) which was signed by 15 Asia-Pacific nations on Nov. 15, they said at a meeting with the Ministry of Economic Affairs (MOEA). Some participants said that the NT dollar’s
BREATH OF LIFE: The firm said the under-utilized plant should start mass production in the first quarter, timed to coincide with Intel Corp’s release of its Ice Lake server chip Hon Hai Precision Industry Co (鴻海精密) plans to assemble key components for Google servers at its plant in Wisconsin, people familiar with the matter said, finally breathing life into a factory that US President Donald Trump hailed as crucial to bringing manufacturing back to the US. The company has decided to locate production for this new contract at the existing complex rather than make the components at home or in China, the people said, asking not to be identified. The under-utilized plant should start mass production in the first quarter, timed with the release of Intel Corp’s Ice Lake server chips,