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Manufacturing sector's net profits drop, despite growing revenues

Manufacturing sector's net profits drop, despite growing revenues

Taipei, May 1 (CNA) The net profits in Taiwan's manufacturing sector dropped significantly in 2011 despite growing revenues, according to the results of a survey released Tuesday. 2011 was a time when Taiwan's manufacturing sector "continued to reap a great harvest from 2010, but it failed to retain its strength in the second half amid natural disasters and the debt crisis," said the Chinese-language CommonWealth Magazine, which conducted the survey. The survey found that the total revenue of the country's top 1,000 manufacturing companies reached NT$25.82 trillion (US$885.39 billion) in 2011, up 4.4 percent from a year ago, while their combined net profits totaled NT$705.8 billion, down 44.5 percent from some NT$1.27 trillion in 2010. Hon Hai Precision Industry Co., which manufactures iPhones and iPads for Apple Inc., retained first place in terms of corporate profits with revenue of NT$3.45 trillion, a record high in Taiwan's business history and accounting for 21.4 percent of the nation's gross domestic product for 2011, according to the survey results. The combined total revenues of the other top four manufacturing companies -- Quanta Computer Inc., state-run oil refiner CPC Corp., Taiwan, and Formosa Petrochemical Corp. -- could barely match that of Hon Hai, according to the survey results. The service sector also experienced an overall drop in 2011, the magazine said. The revenues of Taiwan's top 500 service companies registered marginal growth of less than 1 percent last year at NT$8.4 trillion, while their total net profits fell 25.78 percent to NT$90.63 billion, according to the report. However, the financial sector exhibited good performance in 2011, with the sector's top 100 companies posting an annual growth of 2.4 percent in revenue and nearly 17 percent in net profits to nearly NT$3.99 trillion and NT$227.55 billion, respectively. It was the first time the sector had posted positive growth since the 2008 global financial crisis, the magazine said. (By James Lee)


Updated : 2021-07-28 22:54 GMT+08:00