Formosa Plastics Group (台塑集團), Taiwan’s largest industrial conglomerate, yesterday posted overall revenue of NT$118.61 billion (US$3.66 billion) for last month, marking a 7.2 percent rise from October, but a 2.5 percent fall from one year earlier.
The group has mixed views about its business outlook for the current quarter and beyond, as uncertainty builds over the US power transition and geopolitical tensions.
Formosa Plastics Corp (台灣塑膠), a vertically integrated supplier of plastic resins and petrochemicals, reported a monthly uptick of 15.3 percent in its revenue to NT$18.15 billion, as Typhoon Kong-rey postponed partial shipments slated for October and last month, it said.
Photo: CNA
The company is expecting a decline in revenue for this month, as it would idle more plants to cope with slack demand.
The financial performance for this quarter might hold steady compared with the previous quarter, without improving next quarter, it said.
The number of working days would decrease in the first quarter of next year due to the Lunar New Year holiday, but utilization rates would rise modestly with the advent of high season, it said.
US president-elect Donald Trump’s protectionist talk might prompt Asian customers to replenish inventory ahead of his inauguration to dodge tariff hikes, it said, adding that the company would be flexible and agile to meet customer demand.
Formosa Petrochemical Corp (台塑石化), engaged primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins from its naphtha cracking operations, booked NT$51.24 billion in revenue, up 12.7 percent from one month earlier, as cold weather boosted energy demand but a supply glut weighed on international oil prices, it said.
The company aims to produce 426,000 barrels per day this month, keeping refining capacity at 71 percent and oil cracking capacity at 53 percent for this quarter, it said.
Formosa Chemicals and Fibre Corp (台灣化學纖維), which produces and sells petrochemical products, nylon fibers and rayon staple fibers in Taiwan and abroad, saw its revenue grow 2 percent to NT$27.25 billion on better market diversification practices, it said.
However, sales are set to decline this month, as China fails to emerge from the woods despite the introduction of stimulus measures and peace remains elusive in the Middle East, which is unfavorable for petrochemical products, it said.
Nan Ya Plastics Corp (南亞塑膠), whose main business involves making processed plastic and chemical products, electronic materials and polyester fiber, recorded NT$21.97 billion revenue, a 3.5 percent retreat from October, attributable to the low season and the Thanksgiving holiday in the US, the firm said.
Business would improve somewhat this month but stagnate next quarter due to the Lunar New Year holiday in Taiwan, it said.
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