Formosa Plastics Falls After Net Misses Estimates: Taipei Mover
The shares declined 2 percent to NT$87.10 as of 1:30 p.m. local time, the lowest close since Feb. 13. The Taiex Index (TWSE) rose 0.1 percent. The stock has gained 8 percent this year, trailing the benchmark’s 13 percent advance.
Net income dropped 22 percent to NT$35.7 billion ($1.21 billion) last year, Formosa Plastics said in a statement yesterday. The average of 15 analyst estimates compiled by Bloomberg News was for a profit of NT$38.6 billion. The company plans to pay a cash dividend of NT$4 a share for 2011.
“Its cash dividend yield falls to 4.5 percent from more than 5 percent over the past few years,” Jun Liao, vice president at Taipei-based Grand Cathay Investment Services Corp., said by telephone today. Liao has a neutral rating on the stock and expects the company to post a NT$36.7 billion profit this year.
Formosa Plastics’ board also approved a proposal to sell as much as NT$12 billion of bonds, according to a separate statement issued yesterday. The company said it plans to invest an additional $170 million in a steel venture in Vietnam.
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