Fiber glass fabric maker Fulltech conservative about 4Q11 outlook

Fulltech Fiber Glass is conservative about the business outlook for the fourth quarter of 2011 due to weak demand for fiber glass fabrics from the copper-clad laminate (CCL) sector, according to company chairman Yuan-Pin Chang.

Instead of cutting prices to win orders, Fulltech may raise the level of inventory in the fourth quarter in preparation for a possible rebound in demand in 2012, said Chang, adding that Fulltech will also shift more of its capacity for the production of industrial-grade fiber glass yarns.

Industrial-grade fiber glass yarns accounted for 60% of Fulltech's total production of fiber glass yarns in the third quarter of 2011 compared to 42% in the first quarter, the company noted.

Fulltech has posted net profits of NT$579 million (US$19.38 million), or an EPS of NT$2.05, on revenues of NT$3.38 billion for the first three quarters of 2011, according to company data.