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Grand Pacific posts NT$2.24 EPS in H1.

Taipei, Sept. 3, 2009 (CENS)--Grand Pacific Petrochemical Corp., one of Taiwan's leading manufacturers of styrene monomer, posted NT$1.585 billion (US$48.17 million at US$1:NT$32.9) in after-tax earnings, or NT$2.24 0.06) per share, hitting a new record since 1989.

The company attributed the record-high earnings to the price hike in SM and its production lines running in full capacity. The company saw earnings from core business doubled to reach NT$530 million (US$16.1 million) in the second quarter of this year from the previous quarter. In addition, its investments in mainland China contributed NT$903 million (US$27.44 million) to overall earnings scored in the second quarter.

At present, Grand Pacific's two production lines in Taiwan are capable of rolling out 320,000 metric tons of SM per year. The SM production lines were running in full capacity in the second quarter. In addition, its 250,000-metric-ton per-year ABS (acrylonitrile butadiene styrene) production lines in Zhenjiang of Jiangsu province, mainland China were also running in full capacity in the second quarter.

Grand Pacific said it saw steady growth in earnings from sales of SM in both July and August. The company believed it would see earnings in the third quarter reach the same level as the first quarter if there is no big volatility in the selling prices for SM.

Thanks to the rise in production equipment utilization rate and the procurement of low-price raw materials, Grand Pacific saw combined gross profit margin climb to 18.67% in the second quarter from 18.62% in the first quarter. The company scored NT$952 million (US$28.93 million) in pretax earnings in the second quarter alone.

An industry analyst noted mainland China's demand for SM has been on the rise since the beginning of this year, prompting the rise for the selling prices for the products. ((BS))
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Title Annotation:Grand Pacific Petrochemical Corp.
Publication:The Taiwan Economic News
Article Type:Financial report
Date:Sep 3, 2009
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