Taiwan’s cement firms see earnings growth in Q2

Taiwan’s cement firms see earnings growth in Q2
Published: 13 August 2009

Due to the economic recovery and earnings from investments, Taiwain’s leading cement producers, including Taiwan Cement Corp., Asia Cement Corp., Universal Cement Corp. and Glodsun development & Construction Co., all are expected to see higher earnings in the second quarter than that posted in the previous one.
 
An industry insider noted domestic demand for cement decline by 10% year-on-year in the first quarter of this year but the rate of decline has slowed in the second quarter because of economic recovery.
 
In addition, domestic public construction projects will fuel demand in the second half of this year. Also rising cement prices quoted in China in the fourth quarter of this year will help Taiwan’s leading cement producers to post better earnings.
 
Universal is expected to turn profitable in the second quarter of this year from an operating loss of NT$56 million (US$1.71 billion at US$1:NT$32.7) in the first quarter. Taiwan Cement estimated it would score NT$1.42 billion (US$43.42 million) in after-tax earnings in the second quarter, up 680% from the previous quarter.
 
Universal estimated it would score NT$350 million (US$10.7 million) in after-tax earnings in the second quarter of this year, resulting in NT$300 million (US$9.17 million) in after-tax earnings in the first half of this year.
 
Goldsun is expected to post NT$300 million (US$9.17 million), or NT$0.25 (US$0.007) in after-tax earnings per share, in the first half of this year, as well as NT$1 billion (US$30.58 million) in after-tax earnings, or NT$0.8 (US$0.024) in earnings per share, in 2009.