July 31, 2009
Universal Cement to Profit From Recovering Car Market in China
Taipei, July 29, 2009 (CENS)--Universal Cement Corp., one of Taiwan`s leading producers of cement, stands to profit from the recovering automobile market in China with its 30% stake in Six Union Machinery Enterprise Co., a Taiwan-invested manufacturer of car parts in China.
With sales rising since the second quarter of this year, Six Union is expected to contribute over NT$260 million (US$7.92 million at US$1:NT$32.8) to Universal`s overall earnings this year, higher than expectations.
Universal said it will turn from red to black this year, predicting it would be able to score NT$0.18 (US$0.005) in earnings per share this year.
Since the second quarter, Universal has seen growth in earnings from major products as cement and gypsum boards, turning its core business profitable. Six Union`s growing profits will help Universal offset losses in China investments over the past few years.
Six Union is one of Taiwan`s major manufacturers of automobile parts, as well as making car wheels in China and being a satellite factory for Toyota Motors. As of the end of last year, the company, capitalized at NT$1.7 billion (US$51.82 million), saw undistributed earnings exceed NT$5 billion (US$152.43 million) and net worth of over NT$60 (US$1.82) per share.
(by Ben Shen)
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