Taiwan's Nan Ya Plastics witness a 10% drop in Q2 net profit

01-Sep-08

Taiwan-based world's largest processor of plastics for pipes and imitation leather, Nan Ya Plastics Corp exhibited a significant 10% decline YOY in the Q2 net profit due to inability of the firm's product prices to keep up with the rising feedstock cost. Nan Ya Plastics' Q2 net income fell to NT$10.7 bln (US$339 mln), from NT$11.9 bln (US$376 mln) for Q2 2007. Net income for H1 dropped 18% to NT$18.8 bln (US$593 mln), the company said. Owing to the ailing demand from Chinese textile companies for the chemical fibers and plastics, Nan Ya Plastics (whose biggest revenue source is ethylene glycol) was unable to pass to surging ethylene cost to its customers thereby reducing the net profits for the quarter.