 2012-06-11 |
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Jing Shi News - 11:54 AM
In May, with falling oil prices and a sharp drop in petrochemical raw material costs, downstream tape manufacturers exhibited weak order intake. YC reported a slight revenue decrease to NT$5.12 billion for May, down 4% from April's NT$5.34 billion but up 9.4% compared to the same month last year. Cumulatively, the revenue for the first five months of the year reached NT$25.26 billion, a 9.9% year-over-year increase.
As an upstream supplier within the group, YC focuses on BOPP film production. The correction in petrochemical raw material prices in May significantly impacted the upstream sector, resulting in a minor revenue decline for the parent company.
However, from a consolidated revenue perspective, YC's May consolidated revenue was NT$16.17 billion, up 5.33% from NT$15.36 billion in April and an 8.72% increase year-over-year. YC noted that tape product sales and prices remained stable and that the benefits from the "Bao Dashi" packaging distribution network, with its expansion across both sides of the Taiwan Strait, contributed to the slight growth in consolidated revenue for May.
The group's subsidiary, ACHEM, which focuses on tape production, reported May revenue of NT$4.75 billion, a 2.15% month-over-month increase and a 22.52% year-over-year increase.
Looking ahead, YC anticipates that downstream inventory depletion is nearing its bottom, and a rebound in inventory replenishment is expected. However, the timing of actual order recovery will depend on clear signs of stabilization in oil and raw material prices, which will likely drive operational recovery. |
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