Taiwan Cement’s net earnings hit 3-year high

Taiwan Cement’s net earnings hit 3-year high
Published: 03 November 2010

Buoyed by contributions from invested firms as Taiwan Prosperity Chemical Corp. and Hoping Power Company, Taiwan Cement Corp., Taiwan’s leading producer of cement, scored NT$5.395bn in after-tax earnings in the first three quarters, up 10.7% YoY for the highest record in three years.

With a promising cement market in China, Taiwan Cement is expected to see growing earnings in the years to come.

With earnings in the first three quarters mainly from invested firms, Taiwan Cement’s earnings from non-core businesses grew 18% year-on-year in the first three quarters. Taiwan Cement holds 50% stake in Taiwan Prosperity Chemical, which posted NT$980 million in after-tax earnings in the third quarter, up 26% from the preceding quarter.

Hoping Power’s acquisition of low-cost coal has helped the power company to raise gross profit margin by three percent YoYin the first three quarters, becoming Taiwan Cement’s other moneymaker.

Power rationing in southern China has helped Taiwan Cement to raise profitability, driving up selling prices of cement quoted in the provinces of Guangdong, Guangxi and Fujian by between 15% and 25% in the third quarter from the preceding one.