Three Taiwanese paper giants see uptick in March's operational income, expectation of turnaround
June 2, 2009
– Backed by prosperity and an economic recovery, Taiwan’s three paper giants Yuen Foong Yu Paper Co., Chen Loong Corp., and Rongcheng Paper Co. reported good news in operational income in March.
Yuen Foong reported NTD2.19 billion (US$67.5 million) worth of industrial paper and consumer goods in March, increasing 20% from the month before. For industrial paper, the operational income jumped NTD100 million and household paper moved up by NTD50 million.
With growth in operational income, a company stakeholder estimated Yuen Foong Yu Paper Co. Ltd. will make up losses and become profitable in March.
Chen Loong pointed out that under a stable raw material supply, the company achieved NTD1.52 billion of operational income in March, up 10% from a month earlier. In the first quarter, it had NTD4 billion, which is still less than the previous period of last year and is largely attributed to the high cost of raw materials and ongoing rising sales prices.
Rongcheng saw a better operational income in March than February with a growth ratio of 9.2%. Shipment has seen improvements as well.
Accompanied by the good results of the three Taiwanese paper giants, the companies may see a turnaround, according to a stakeholder. The paper mills have also held that their March performance signaled improving prosperity, but were prudent about second-quarter results.