Income of FPG subsidiaries post sharp decline

Four major subsidiaries of Taiwanese company Formosa Plastics Group (FPG), including Formosa Plastics Corp., Nan Ya Plastics Corp., Formosa Chemical and Fibre Corp. and Formosa Petrochemical Corp. (FPCC), generated an after-tax net income of NT$48.52 billion (US$1.41 billion) in 2008. This figure represents a NT$175.6 billion (US$5.11 billion) or 78% year on year loss. FPC said demand for petrochemical products from China and India had risen, driving up the quotation of polyethylene (PE) from US$600 per metric ton at the end of January to around US$1,000. Excluding investments in the ailing DRAM (dynamic random access memory) sector, FPG’s four major subsidiaries would have racked up more earnings last year, with FPC being the most profitable, with NT$3.4 (US$0.10) after-tax earnings per share in 2008. (March 9, 2009)