TSMC, UMC Likely to Beat Financial Projections
November 6, 2001 (TAIPEI) -- John Hsuan, the vice chairman of United Microelectronics Corp., said during a
presentation to institutional investors that the company's capacity use would grow to around 45 percent in the
fourth quarter, while sales would increase by 10 percent at least to turn gross profits positive.
Hsuan said the company would cut capital spending for the full year of 2001 from the previously set US$1.5
billion to US$1.1 billion in recognition of the uncertain prospects for the industry. However, he stressed that
UMC remains optimistic about the outlook of the communications industry, and will continue its deployment in the
field.
After Taiwan Semiconductor Manufacturing Co., Ltd. and UMC delivered their forecasts about performance in
the fourth quarter, their full-year operations thereafter naturally emerged. Observers say their forecasts for the
fourth quarter suggest that both of the wafer foundry giants will have better-than-expected profit results this year.
There is increasing confidence that the two companies' operating profits will exceed their downwardly-adjusted
projections. TSMC is expected to rack up after-tax profits per share of NT$0.74, up from the previously
expected NT$0.63. UMC will not perform as poorly as it previously predicted, to lose NT$0.24 per share. As
far as the outlook for next year's first quarter is concerned, TSMC is confident of better prospects, but UMC has
not made its thoughts known yet.
At the performance presentation for institutional investors, UMC said its fourth-quarter sales would increase 10
percent at least from the third quarter to reach above NT$13.15 billion, and bring up its full-year sales to just
over its downwardly revised target of NT$63.546 billion. Moreover, UMC said its gross profits would turn back
into positive territory in the fourth quarter, and was confident of beating its recently cut gross profit target of
NT$8.49 billion eventually. If so, UMC may not lose as much as NT$0.24 a share this year, as it previously
forecast.
The stronger recovery in production capacity use both in chips for personal computers and for high-end
manufacturing processes will enable TSMC's fourth-quarter sales to grow by 15 percent at least from the third
quarter, and operating profits and after-tax profits for the period to be twice as high as in the third quarter.
As a result, TSMC will see its fourth-quarter sales grow to NT$30.98 billion at least, and enjoy full-year sales of
NT$123.74 billion, equivalent to 101.51 percent of its annual sales target, which was cut in mid-October. Its
fourth-quarter, after-tax profits are expected to hit NT$2.48 billion, and its full-year sum may reach NT$12.45
billion, equivalent to NT$0.74 a share and 113.3 percent of its annual profit target.
Related stories:
- UMC Chairman Tsao Outlines Strategy for Next Five Years
- TSMC May Win 60 Pct. of Global Market Share in Q3
(Commercial Times, Taiwan) |
