Disciplined CAPEX and operating performance
enhancements to continue in 2019
Fourth Quarter 2018 Overview1:
- Revenue: NT$35.52 billion (US$1.16
billion)
- Gross margin: 13.0%
- Foundry revenue from 28nm: 10%;
Foundry operating margin: -1.3%
- Foundry capacity utilization rate:
88%
- Net loss attributable to
stockholders of the parent: NT$1.71 billion (US$56
million)
- Loss per share: NT$0.14; Loss per
ADS: US$0.023
United Microelectronics Corporation (NYSE: UMC; TWSE:
2303) (“UMC” or “The Company”), a leading global semiconductor
foundry, today announced its consolidated operating results for the
fourth quarter of 2018.
Fourth quarter consolidated revenue was NT$35.52 billion, down
9.8% QoQ from NT$39.39 billion in 3Q18 and declined 3.0% YoY from
NT$36.63 billion in 4Q17. Consolidated gross margin for 4Q18 was
13.0%. Net loss attributable to stockholders of the parent was
NT$1.71 billion, with loss per ordinary share of NT$0.14.
Jason Wang, co-president of UMC, said, “In the fourth quarter,
foundry revenue declined 9.8% QoQ to NT$35.49 billion, leading to a
foundry operating loss of 1.3%. Utilization rate was 88%, bringing
wafer shipments to 1.71 million 8-inch equivalent wafers. Despite
softened wafer demand during the fourth quarter, UMC continued to
maintain stable capacity utilization for 8" and mature 12"
geometries.”
Co-president Wang continued, “In 2018, we started seeing the
early fruits of our strategy with measurable results. Our
disciplined capital expenditure approach helped to generate a free
cash flow total of NT$31.34 billion for the year. In addition, we
completed two rounds of treasury share buybacks for cancellation,
amounting to approximately NT$6.5 billion.”
Co-president Wang further commented, “Looking into the first
quarter of 2019, we anticipate further deceleration in customers’
wafer demand, due to a softer than expected outlook in entry-level
and mid-end smartphones as well as falling crypto currency
valuations. Although UMC’s ongoing transformation will need time to
reach its full synergy and potential, our progress so far has
enabled the company to better endure these current headwinds. Going
forward, we will continue executing our strategy of evaluating and
pursuing return-driven investment while focusing on our technology
strength within specialty processes on existing nodes. We are
confident that our sustained efforts and calculated global capacity
expansion will strengthen UMC’s resilience during a challenging
market, while favorably positioning the company to take maximum
advantage during strong demand cycles.”
1 Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with TIFRSs recognized
by Financial Supervisory Commission in the ROC, which is different
from IFRSs issued by the International Accounting Standards Board.
They represent comparisons among the three-month period ending
December 31, 2018, the three-month period ending September 30,
2018, and the equivalent three-month period that ended December 31,
2017. For all 4Q18 results, New Taiwan Dollar (NT$) amounts have
been converted into U.S. Dollars at the December 31, 2018 exchange
rate of NT$ 30.72 per U.S. Dollar.
Summary of Operating Results
Operating Results (Amount: NT$ million)
4Q18 3Q18 QoQ %
4Q17 YoY %
change change Net
Operating Revenues 35,517 39,387 (9.8 ) 36,631 (3.0 ) Gross Profit
4,601 6,922 (33.5 ) 6,298 (26.9 ) Operating Expenses (6,396 )
(5,702 ) 12.2 (5,198 ) 23.0 Net Other Operating Income and Expenses
1,206 1,215 (0.7 ) 801 50.6 Operating Income (Loss) (589 ) 2,435 -
1,901 - Net Non-Operating Income and Expenses (1,998 ) (1,606 )
24.4 (152 ) 1,214.5 Net Income (Loss) Attributable to Stockholders
of the Parent (1,707 ) 1,720 - 1,771 - EPS (NT$ per share) (0.14 )
0.14 0.15 (US$ per ADS) (0.023 ) 0.023
0.024
Net operating revenues in 4Q18 declined 9.8% to NT$35.52
billion, including NT$35.49 billion from the foundry segment.
Revenue contribution from 40nm and below technologies was 34%.
Gross profit fell 33.5% to NT$4.60 billion, or 13.0% of revenue.
Operating expenses increased 12.2% to NT$6.40 billion. Net other
operating income remained flat at NT$1.21 billion, leading to an
operating loss of NT$0.59 billion. Net non-operating expense was
NT$2.00 billion. Net loss attributable to stockholders of the
parent was NT$1.71 billion.
Loss per ordinary share for the quarter was NT$0.14. Loss per
ADS was US$0.023. The basic weighted average number of outstanding
shares in 4Q18 was 12,111,826,935, compared with 12,053,892,152
shares in 3Q18 and 12,208,239,978 shares in 4Q17. The diluted
weighted average number of outstanding shares was 12,111,826,935 in
4Q18, compared with 13,354,955,886 shares in 3Q18 and
13,474,873,551 shares in 4Q17. The fully diluted share count on
December 31, 2018 was approximately 13,512,438,000. On December 31,
2018, UMC held 480 million treasury shares acquired from the 17th
and 19th share buy-back programs.
Detailed Financials
Section
Net operating revenues decreased 9.8% to NT$35.52 billion. COGS
declined 4.8% to NT$30.92 billion, as depreciation declined 11.4%
to NT$10.23 billion while other manufacturing costs declined 1.1%
to NT$20.69 billion. Gross profit was NT$4.60 billion. Operating
expenses increased 12.2% to NT$6.40 billion due to an increase of
12.5% in R&D expense to NT$3.75 billion and an Expected Credit
Loss of NT$409 million, which was partially offset by decreases in
Sales & Marketing and General and Administrative (G&A)
expenses. R&D expense represented 10.6% of 4Q18 net operating
revenues. Net other operating income was NT$1.21 billion, leading
to an operating loss of NT$0.59 billion.
COGS & Expenses (Amount: NT$ million)
4Q18 3Q18 QoQ %
4Q17 YoY %
change change Net
Operating Revenues 35,517 39,387 (9.8) 36,631 (3.0) COGS (30,916)
(32,465) (4.8) (30,333) 1.9 Depreciation (10,228) (11,549) (11.4)
(10,990) (6.9) Other Mfg. Costs (20,688) (20,916) (1.1) (19,343)
7.0 Gross Profit 4,601 6,922 (33.5) 6,298 (26.9) Gross Margin (%)
13.0% 17.6% 17.2% Operating Expenses (6,396) (5,702) 12.2 (5,198)
23.0 G&A (1,339) (1,386) (3.4) (1,164) 15.0 Sales &
Marketing (903) (987) (8.5) (944) (4.3) R&D (3,745) (3,329)
12.5 (3,090) 21.2 Expected Credit Loss (409) - - - -
Net Other Operating Income &
Expenses
1,206 1,215 (0.7) 801 50.6 Operating Income (Loss) (589)
2,435 - 1,901 -
Net non-operating expense in 4Q18 was NT$2.00 billion, primarily
resulting from NT$1.86 billion in net investment loss and NT$438
million in net interest expense, partly offset by NT$304 million in
exchange gain.
Non-Operating Income and Expenses (Amount: NT$
million) 4Q18 3Q18 4Q17 Non-Operating Income
and Expenses (1,998) (1,606) (152) Net
Interest Income and Expenses (438) (507) (542) Net Investment Gain
and Loss (1,859) (126) (102) Exchange Gain and Loss 304 (961) 500
Other Gain and Loss (5) (12) (8)
Cash inflow from operating activities was NT$12.12 billion. Cash
outflow from investing activities totaled NT$4.61 billion,
including NT$4.36 billion in CAPEX spending for the foundry
segment, resulting in free cash flow of NT$7.76 billion. Cash
outflow from financing activities totaled NT$5.72 billion,
including NT$3.02 billion in treasury share buyback and NT$2.86
billion in the payment of bank loans. Net cash inflow in 4Q18 was
NT$2.14 billion. Over the next 12 months, the company expects to
repay NT$2.62 billion in bank loans.
Cash Flow Summary
For the 3-Month For the 3-Month (Amount: NT$ million)
Period Ended Period Ended Dec. 31, 2018 Sep.
30, 2018 Cash Flow from Operating Activities 12,123 15,772 Net
income (loss) before tax (2,587 ) 829 Depreciation &
Amortization 12,414 12,973 Expected credit loss 409 -
Net loss of financial assets and
liabilities at FVTPL
635 797
Share of profit or loss of associates and
joint ventures
1,148 (193 ) Exchange loss (gain) on financial assets and
liabilities (68 ) 1,126 Changes in working capital 1,319 158
Interest paid (905 ) (94 ) Other (242 ) 176 Cash Flow from
Investing Activities (4,613 ) (5,476 ) Acquisition of PP&E
(4,361 ) (5,612 ) Acquisition of intangible assets (292 ) (169 )
Other 40 305 Cash Flow from Financing Activities (5,724 ) (3,253 )
Bank loans (2,863 ) 3,114 Treasury stock acquired (3,019 ) -
Treasury stock sold to employees - 2,204 Cash dividends - (8,557 )
Other 158 (14 ) Effect of Exchange Rate 356 (716 ) Net Cash Flow
2,142 6,327
Cash and cash equivalents increased to NT$83.66 billion. Days of
inventory increased three days to 53 days.
Current Assets (Amount: NT$ billion) 4Q18
3Q18 4Q17 Cash and Cash Equivalents 83.66
81.52 81.68 Notes & Accounts Receivable 23.88
25.61 20.97 Days Sales Outstanding 64 61 54 Inventories, net 18.20
17.59 18.26 Days of Inventory 53 50 53 Total Current Assets
141.19 140.15 139.16
Current liabilities decreased to NT$49.90 billion. Total
liabilities decreased to NT$158.07 billion, leading to a debt to
equity ratio of 77%.
Liabilities (Amount: NT$ billion) 4Q18
3Q18 4Q17 Total Current Liabilities 49.90
51.43 88.06 Notes & Accounts Payable 6.80 6.89 6.54
Short-Term Credit / Bonds 18.23 20.33 52.81 Payable on Equipment
4.01 2.59 4.67 Other 20.86 21.62 24.04 Long-Term Credit / Bonds
67.08 67.46 53.32 Long-Term Investment Liabilities 20.41 20.16
20.49 Total Liabilities 158.07 160.11 180.06 Debt to Equity
77% 75% 84%
Analysis of
Revenue2
for Foundry Segment
Revenue from Asia Pacific decreased to 51%, while contribution
from North American customers increased to 38%. Revenue from Japan
remained at 3%.
Revenue Breakdown by Region Region
4Q18 3Q18 2Q18
1Q18 4Q17 North America 38% 34%
37% 42% 43% Asia Pacific 51% 52%
51% 47% 45% Europe 8% 11%
9% 8% 9% Japan 3% 3% 3%
3% 3%
Business from 14nm fell to 1% revenue, while 28nm contribution
declined to 10%.
Revenue Breakdown by Geometry Geometry
4Q18 3Q18 2Q18
1Q18 4Q17 14nm and below 1% 5%
3% 2% 2% 14nm<x<=28nm 10%
13% 15% 12% 15% 28nm<x<=40nm 23%
22% 26% 30% 28% 40nm<x<=65nm
13% 12% 12% 13% 12%
65nm<x<=90nm 11% 10% 7% 6%
5% 90nm<x<=0.13um 13% 11% 11% 11%
12% 0.13um<x<=0.18um 15% 14% 13%
13% 13% 0.18um<x<=0.35um 11% 10%
10% 10% 10% 0.5um and above 3%
3% 3% 3% 3%
Revenue from fabless customers decreased to 92% of revenue.
Revenue Breakdown by Customer Type Customer
Type 4Q18 3Q18 2Q18
1Q18 4Q17 Fabless 92% 93%
92% 92% 91% IDM 8% 7% 8%
8% 9%
The communication segment increased to 44% of sales, while
revenue from consumer applications reached 30%. Computer related
applications declined to 15% of revenue.
Revenue Breakdown by Application (1)
Application 4Q18 3Q18
2Q18 1Q18 4Q17 Computer
15% 19% 16% 14% 13% Communication
44% 43% 47% 47% 49% Consumer
30% 28% 28% 29% 29% Others
11% 10% 9% 10% 9%
(1) Computer consists of ICs such as CPU, GPU, HDD
controllers, DVD/CD-RW control ICs, PC chipset, audio codec,
keyboard controller, monitor scaler, USB, I/O chipset.
Communication consists of handset components, broadband,
WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists
of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller,
game consoles, DSC, smart cards, toys, etc.
2 Revenue in this section represents wafer sales
Blended ASP Trend for Foundry
SegmentBlended average selling price (ASP) in 4Q18
decreased.
(To view ASP trend, visit
http://www.umc.com/english/investors/4Q18_ASP_trend.asp)
Shipment and Utilization
Rate3 for Foundry Segment
In 4Q18, wafer shipments decreased 5.2% to 1,711K. Quarterly
capacity increased 1.0% QoQ to 1,958K, resulting in an overall
utilization rate of 88%.
Wafer Shipments 4Q18
3Q18 2Q18 1Q18
4Q17 Wafer Shipments(8” K equivalents) 1,711
1,804 1,846 1,747 1,670
Quarterly
Capacity Utilization Rate 4Q18
3Q18 2Q18 1Q18
4Q17 Utilization Rate 88% 94% 97%
94% 90% Total Capacity(8” K equivalents) 1,958
1,938 1,918 1,858 1,886
3 Utilization Rate = Quarterly Wafer Out / Quarterly
Capacity
Capacity4 for Foundry
Segment
Total capacity in the fourth quarter totaled 1,958K 8-inch
equivalent wafers. We expect first quarter capacity to decline by
approximately 1.1% QoQ to 1,937K 8-inch equivalent wafers,
primarily due to fewer working days and tool maintenance.
Annual Capacity inthousands of
wafers
Quarterly Capacity inthousands
of wafers
FAB Geometry(um) 2018
2017 2016 2015 FAB
1Q19E 4Q18 3Q18
2Q18 WTK 6" 3.5 – 0.45 396
422 423 421
WTK 91 93
93 106
Fab 8A 8" 0.5 – 0.25
825 825 827 813
Fab 8A
204 207 207 207
Fab 8C 8"
0.35 – 0.11 383 357 348 347
Fab
8C 106 108 92 92
Fab 8D
8" 0.13 – 0.09 347 341 342
341
Fab 8D 89 90 86 86
Fab 8E 8" 0.5 – 0.18 418 418
419 418
Fab 8E 103 105
105 105
Fab 8F 8" 0.18 – 0.11
431 417 401 388
Fab 8F 107
108 108 108
Fab 8S 8"
0.18 – 0.11 372 347 336 335
Fab
8S 92 93 93 93
HJ 8"
0.5 – 0.11 771 753 750 667
HJ 201 194 194 194
Fab
12A 12" 0.13 – 0.014 997 970
885 793
Fab 12A 246 250 250
250
Fab 12i 12" 0.13 – 0.040 555
537 584 572
Fab 12i 141
144 144 136
USCXM 12" 0.040 –
0.028 183 97 9 -
USCXM 50
51 51 46
Total(1) 7,673
7,304 6,983 6,617
Total
1,937 1,958 1,938
1,918 YoY Growth Rate 5% 5% 6%
5%
(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch
equivalent wafer; one 12-inch wafer is converted into 2.25(122/82)
8-inch equivalent wafers. Capacity total figures are expressed in
8-inch equivalent wafers.
CAPEX for Foundry
Segment
CAPEX spending in 4Q18 was US$141 million, bringing 2018 capital
expenditures to US$650 million. Full year 2019 CAPEX is budgeted
for US$1.0 billion.
Capital Expenditure by Year - in US$ billion Year
2018 2017 2016 2015 2014 CAPEX $
0.7 $ 1.4 $ 2.8 $ 1.9 $ 1.4
2019 CAPEX Plan
8"
12"
Total
25%
75%
US$1.0 billion
4 Estimated capacity numbers are based on calculated maximum
output rather than designed capacity. The actual capacity numbers
may differ depending upon equipment delivery schedules, pace of
migration to more advanced process technologies, and other factors
affecting production ramp-up.
Brief Summary of Full Year 2018
Consolidated Results
- Consolidated revenue in NTD increased
1.3% YoY to NT$151.25 billion, up from NT$149.29 billion in
2017.
- Gross margin was 15.1%, compared to
18.1% in 2017.
- Operating margin was 3.8%, compared to
4.4% in 2017.
- Net income attributable to stockholders
of the parent was NT$7.07 billion in 2018.
- EPS was NT$0.58, or EPADS of US$0.094
for 2018.
- The contribution from 28nm technologies
and below accounted for 16% in 2018. The revenue from 40nm in 2018
decreased to 25%.
Operating Results (Amount: NT$ million)
2018 2017 YoY
%change Net Operating Revenues 151,253
149,285 1.3 Gross Profit 22,840 27,058 (15.6 ) Operating
Expenses (22,160 ) (22,143 ) 0.1 Net Other Operating Income &
Expenses 5,117 1,653 209.4 Operating Income 5,797 6,568 (11.7 ) Net
Non-Operating Income & Expenses (3,613 ) 1,230 - Income Tax
Benefit (Expenses) 459 (1,167 ) - Net Income Attributable to
Stockholders of the Parent 7,073 9,629 (26.5 ) EPS (NT$ per share)
0.58 0.79 (US$ per ADS) 0.094 0.129
Annual Sales Breakdown in Revenue for
Foundry Segment
Region 2018
2017 North America 38% 43% Asia Pacific
50% 47% Europe 9% 7% Japan 3%
3%
Technology
2018 2017 14nm and below 3%
1% 14nm<x<=28nm 13% 16%
28nm<x<=40nm 25% 28% 40nm<x<=65nm
12% 12% 65nm<x<=90nm 8% 5%
90nm<x<=0.13um 12% 12% 0.13um<x<=0.18um
14% 12% 0.18um<x<=0.35um 10% 10%
0.5um and above 3% 4%
Customer Type 2018 2017
Fabless 92% 91% IDM 8% 9%
Application 2018
2017 Computer 16% 13% Communication 45%
49% Consumer 29% 29% Others 10%
9%
First Quarter of 2019 Outlook &
Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To decrease by
6-7%
- ASP in USD: To decline by 1-2%
- Profitability: Gross profit margin will
be in the mid-single digit % range
- Foundry Segment Capacity Utilization:
low 80% range
- 2019 CAPEX for Foundry Segment: US$1.0
billion
Recent Developments /
Announcements
Nov. 22, 2018
UMC Receives Highest Platinum Award for
2018 Taiwan Corporate Sustainability Report
Nov. 9, 2018
UMC Issues Follow-up Statement Regarding
Recent Legal Developments
Nov. 2, 2018
UMC Issues Statement in Response to Recent
Indictment and Civil Complaint
Oct. 24, 2018
UMC 3Q 2018 Financial Results
Please visit UMC’s website for further details
regarding the above announcements
Conference Call / Webcast
Announcement
Tuesday, January 29, 2019
Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM
(London) Dial-in numbers and Access Codes: USA Toll
Free: 1-866 836-0101 Taiwan Number: 02-2192-8016 Other Areas:
+886-2-2192-8016
Access Code:
UMC
A live webcast and replay of the 4Q18 results
announcement will be available atwww.umc.com under the
“Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor
foundry that provides advanced IC production for applications
spanning every major sector of the electronics industry. UMC’s
comprehensive foundry solutions enable chip designers to leverage
the company’s sophisticated technology and manufacturing, which
include world-class 28nm High-K/Metal Gate technology, 14nm FinFET
volume production, specialty process platforms specifically
developed for AI, 5G and IoT applications and the automotive
industry’s highest-rated AEC-Q100 Grade-0 manufacturing
capabilities for the production of ICs found in vehicles. UMC’s 11
wafer fabs are strategically located throughout Asia and are able
to produce over 600,000 wafers per month. The company employs more
than 20,000 people worldwide, with offices in Taiwan, China,
Europe, Japan, Korea, Singapore, and the United States. UMC can be
found on the web at http://www.umc.com.
Note from UMC Concerning
Forward-Looking Statements
Some of the statements in the foregoing announcement are
forward-looking within the meaning of the U.S. Federal Securities
laws, including statements about introduction of new services and
technologies, future outsourcing, competition, wafer capacity,
business relationships and market conditions. Investors are
cautioned that actual events and results could differ materially
from these statements as a result of a variety of factors,
including conditions in the overall semiconductor market and
economy; acceptance and demand for products from UMC; and
technological and development risks. Further information regarding
these and other risks is included in UMC’s filings with the U.S.
Securities and Exchange Commission. UMC does not undertake any
obligation to update any forward-looking statement as a result of
new information, future events or otherwise, except as required
under applicable law.
Safe Harbor Statements
This release contains forward-looking statements. These
statements constitute “forward-looking” statements within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended, and as defined in the United
States Private Securities Litigation Reform Act of 1995. You can
identify these forward-looking statements by use of words such as
“strategy,” “expects,” “continues,” “plans,” “anticipates,”
“believes,” “will,” “estimates,” “intends,” “projects,” “goals,”
“targets” and other words of similar meaning. You can also identify
them by the fact that they do not relate strictly to historical or
current facts.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
performance, financial condition or results of operations of UMC to
be materially different from what is stated or may be implied in
such forward-looking statements. Investors are cautioned that
actual events and results could differ materially from those
statements as a result of a number of factors including, but not
limited to: (i) dependence upon the frequent introduction of new
services and technologies based on the latest developments in the
industry in which UMC operates; (ii) the intensely competitive
semiconductor, communications, consumer electronics and computer
industries and markets; (iii) the risks associated with
international business activities; (iv) dependence upon key
personnel; (v) general economic and political conditions; (vi)
possible disruptions in commercial activities caused by natural and
human-induced events and disasters, including natural disasters,
terrorist activity, armed conflict and highly contagious diseases;
(vii) reduced end-user purchases relative to expectations and
orders; and (viii) fluctuations in foreign currency exchange rates.
Further information regarding these and other risks is included in
UMC’s filings with the United States Securities and Exchange
Commission. All information provided in this release is as of the
date of this release and are based on assumptions that UMC believes
to be reasonable as of this date, and UMC does not undertake any
obligation to update any forward-looking statement as a result of
new information, future events or otherwise, except as required
under applicable law.
The financial statements included in this release are prepared
and published in accordance with Taiwan International Financial
Reporting Standards, or TIFRSs, recognized by the Financial
Supervisory Commission in the ROC, which is different from
International Financial Reporting Standards, or IFRSs, issued by
the International Accounting Standards Board. Investors are
cautioned that there may be significant differences between TIFRSs
and IFRSs. In addition, TIFRSs and IFRSs differ in certain
significant respects from generally accepted accounting principles
in the ROC and generally accepted accounting principles in the
United States.
This release is not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States absent registration or an exemption from registration. Any
public offering of securities to be made in the United States will
be made by means of a prospectus that may be obtained from the
issuer or selling security holder and that will contain detailed
information about the company and management, as well as financial
statements.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet As of December 31, 2018
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) December 31, 2018 US$ NT$ %
Assets Current assets Cash and cash equivalents 2,723 83,662 22.9 %
Financial assets at fair value through profit or loss, current 17
528 0.1 % Contract assets, current 3 92 0.0 % Notes & Accounts
receivable, net 777 23,875 6.5 % Inventories, net 593 18,203 5.0 %
Other current assets 483 14,833 4.2 % Total current
assets 4,596 141,193 38.7 % Non-current assets
Funds and investments 1,091 33,523 9.2 % Property, plant and
equipment 5,627 172,847 47.4 % Other non-current assets 555
17,042 4.7 % Total non-current assets 7,273 223,412
61.3 % Total assets 11,869 364,605 100.0 %
Liabilities Current liabilities Short-term loans 427 13,104
3.6 % Contract liabilities, current 30 932 0.3 % Payables 824
25,325 6.9 % Current portion of long-term liabilities 167 5,121 1.4
% Other current liabilities 177 5,417 1.5 % Total
current liabilities 1,625 49,899 13.7 %
Non-current liabilities Bonds payable 1,266 38,879 10.7 % Long-term
loans 918 28,204 7.7 % Other non-current liabilities 1,337
41,086 11.3 % Total non-current liabilities 3,521
108,169 29.7 % Total liabilities 5,146 158,068
43.4 % Equity Equity attributable to the parent company
Capital 4,044 124,243 34.1 % Additional paid-in capital 1,315
40,399 11.1 % Retained earnings, unrealized gains or losses on
financial assets measured at fair value through other comprehensive
income, exchange differences on translation of foreign operations
and gains or losses on hedging Instruments 1,533 47,075 12.9 %
Treasury stock (184 ) (5,647 ) (1.6 %) Total equity attributable to
the parent company 6,708 206,070 56.5 % Non-controlling interests
15 467 0.1 % Total equity 6,723 206,537
56.6 % Total liabilities and equity 11,869 364,605
100.0 %
Note:New Taiwan Dollars have been translated into U.S. Dollars at
the December 31, 2018 exchange rate of NT $30.72 per U.S. Dollar.
UNITED
MICROELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated
Condensed Statements of Comprehensive Income Figures in
Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) Except
Per Share and Per ADS Data
Year over Year Comparison Quarter over Quarter
Comparison
Three-Month Period Ended
Three-Month Period Ended
December 31, 2018 December 31, 2017 Chg. December 31, 2018
September 30, 2018 Chg. US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Net operating revenues 1,156 35,517 1,192 36,631 (3.0 %)
1,156 35,517 1,282 39,387 (9.8 %) Operating costs (1,006 ) (30,916
) (987 ) (30,333 ) 1.9 % (1,006 ) (30,916 ) (1,057 ) (32,465 ) (4.8
%) Gross profit 150 4,601 205 6,298
(26.9 %) 150 4,601 225 6,922 (33.5 %)
13.0 % 13.0 % 17.2 % 17.2 % 13.0 % 13.0 % 17.6 % 17.6 % Operating
expenses
- Sales and marketing expenses
(29 ) (903 ) (31 ) (944 ) (4.3 %) (29 ) (903 ) (32 ) (987 ) (8.5 %)
- General and administrative expenses
(44 ) (1,339 ) (38 ) (1,164 ) 15.0 % (44 ) (1,339 ) (45 ) (1,386 )
(3.4 %)
- Research and development expenses
(122 ) (3,745 ) (100 ) (3,090 ) 21.2 % (122 ) (3,745 ) (109 )
(3,329 ) 12.5 %
- Expected credit loss
(13 ) (409 )
-
-
100.0 % (13 ) (409 )
-
-
100.0 % Subtotal (208 ) (6,396 ) (169 ) (5,198 ) 23.0 % (208
) (6,396 ) (186 ) (5,702 ) 12.2 % Net other operating income and
expenses 39 1,206 26 801 50.6 % 39
1,206 40 1,215 (0.7 %) Operating income
(loss) (19 ) (589 ) 62 1,901
-
(19 ) (589 ) 79 2,435
-
(1.7 %) (1.7 %) 5.2 % 5.2 % (1.7 %) (1.7 %) 6.2 % 6.2 %
Net non-operating income and expenses
(65 ) (1,998 ) (5 ) (152 ) 1,214.5 % (65 ) (1,998 ) (52 ) (1,606 )
24.4 %
Income (loss) from continuing operations
before income tax
(84 ) (2,587 ) 57 1,749
-
(84 ) (2,587 ) 27 829
-
(7.3 %) (7.3 %) 4.8 % 4.8 % (7.3 %) (7.3 %) 2.1 % 2.1 %
Income tax expense (14 ) (413 ) (18 ) (556 ) (25.7 %) (14 ) (413 )
(21 ) (632 ) (34.7 %) Net income (loss) (98 ) (3,000 ) 39 1,193
-
(98 ) (3,000 ) 6 197
-
(8.4 %) (8.4 %) 3.3 % 3.3 % (8.4 %) (8.4 %) 0.5 % 0.5 %
Other comprehensive income (loss) 4 110 (45 ) (1,366
)
-
4 110 (51 ) (1,568 )
-
Total comprehensive income (loss) (94 ) (2,890 ) (6 )
(173 ) 1,570.5 % (94 ) (2,890 ) (45 ) (1,371 ) 110.8 % Net
income (loss) attributable to:
Stockholders of the parent
(56 ) (1,707 ) 58 1,771
-
(56 ) (1,707 ) 56 1,720
-
Non-controlling interests
(42 ) (1,293 ) (19 ) (578 ) 123.7 % (42 ) (1,293 ) (50 ) (1,523 )
(15.1 %) Comprehensive income (loss) attributable to:
Stockholders of the parent
(52 ) (1,608 ) 14 416
-
(52 ) (1,608 ) 9 279
-
Non-controlling interests
(42 ) (1,282 ) (20 ) (589 ) 117.7 % (42 ) (1,282 ) (54 ) (1,650 )
(22.3 %)
Earnings per share-basic
(0.005 ) (0.14 ) 0.005 0.15 (0.005 ) (0.14 ) 0.005
0.14 Earnings per ADS (2) (0.023 ) (0.70 ) 0.024
0.75 (0.023 ) (0.70 ) 0.023 0.70
Weighted average number of shares outstanding (in millions) 12,112
12,208 12,112 12,054
Notes: (1) New Taiwan Dollars have been translated
into U.S. Dollars at the December 31, 2018 exchange rate of NT
$30.72 per U.S. Dollar. (2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Comprehensive Income
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) Except Per Share and Per ADS Data
For the Three-Month Period Ended For the Twelve-Month
Period Ended December 31, 2018 December 31, 2018 US$ NT$ % US$ NT$
% Net operating revenues 1,156 35,517 100.0 % 4,924 151,253 100.0 %
Operating costs (1,006 ) (30,916 ) (87.0 %) (4,181 ) (128,413 )
(84.9 %) Gross profit 150 4,601 13.0 % 743
22,840 15.1 % Operating expenses - Sales and
marketing expenses (29 ) (903 ) (2.5 %) (127 ) (3,902 ) (2.6 %) -
General and administrative expenses (44 ) (1,339 ) (3.8 %) (157 )
(4,824 ) (3.2 %) - Research and development expenses (122 ) (3,745
) (10.6 %) (424 ) (13,025 ) (8.6 %) - Expected credit loss (13 )
(409 ) (1.2 %) (13 ) (409 ) (0.3 %) Subtotal (208 ) (6,396 ) (18.1
%) (721 ) (22,160 ) (14.7 %) Net other operating income and
expenses 39 1,206 3.4 % 167 5,117 3.4 %
Operating income (loss) (19 ) (589 ) (1.7 %) 189 5,797 3.8 %
Net non-operating income and expenses (65 ) (1,998 ) (5.6 %) (118 )
(3,613 ) (2.4 %)
Income (loss) from continuing operations
before income tax
(84 ) (2,587 ) (7.3 %) 71 2,184 1.4 % Income tax
benefit (expense) (14 ) (413 ) (1.1 %) 15 459 0.4 %
Net income (loss) (98 ) (3,000 ) (8.4 %) 86 2,643 1.8 %
Other comprehensive income (loss) 4 110 0.3 % 31
950 0.6 % Total comprehensive income (loss)
(94 ) (2,890 ) (8.1 %) 117 3,593 2.4 % Net
income (loss) attributable to:
Stockholders of the parent
(56 ) (1,707 ) (4.8 %) 230 7,073 4.7 %
Non-controlling interests
(42 ) (1,293 ) (3.6 %) (144 ) (4,430 ) (2.9 %) Comprehensive
income (loss) attributable to:
Stockholders of the parent
(52 ) (1,608 ) (4.5 %) 265 8,127 5.4 %
Non-controlling interests
(42 ) (1,282 ) (3.6 %) (148 ) (4,534 ) (3.0 %) Earnings per
share-basic (0.005 ) (0.14 ) 0.019 0.58 Earnings per
ADS (2) (0.023 ) (0.70 ) 0.094 2.90
Weighted average number of shares
outstanding (in millions)
12,112 12,104 Notes: (1) New Taiwan Dollars
have been translated into U.S. Dollars at the December 31, 2018
exchange rate of NT $30.72 per U.S. Dollar. (2) 1 ADS equals 5
common shares.
UNITED MICROELECTRONICS CORPORATION
AND SUBSIDIARIES Consolidated Condensed Statement of Cash
Flows For The Twelve-Month Period Ended December 31, 2018
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) US$ NT$
Cash flows from operating activities
: Net income before tax 71 2,184 Depreciation &
Amortization 1,694 52,049 Net loss of financial assets and
liabilities at fair value through profit or loss 38 1,168 Exchange
loss on financial assets and liabilities 40 1,218 Changes in notes
& accounts receivable (45 ) (1,383 ) Changes in contract
liabilities (98 ) (3,021 ) Changes in assets, liabilities and
others (42 ) (1,280 ) Net cash provided by operating activities
1,658 50,935
Cash flows from investing activities :
Acquisition of investments accounted for under the equity method
(27 ) (840 ) Acquisition of property, plant and equipment (638 )
(19,590 ) Increase in refundable deposits (32 ) (983 ) Acquisition
of intangible assets (27 ) (839 ) Others 219 6,752
Net cash used in investing activities (505 ) (15,500 )
Cash flows from financing activities : Decrease in
short-term loans (400 ) (12,288 ) Redemption of bonds (244 ) (7,500
) Proceeds from long-term loans 25 759 Repayments of long-term
loans (86 ) (2,639 ) Cash dividends (279 ) (8,558 ) Treasury stock
acquired (200 ) (6,148 ) Treasury stock sold to employees 72 2,204
Others 22 685 Net cash used in financing activities
(1,090 ) (33,485 ) Effect of exchange rate changes on cash
and cash equivalents 1 37 Net increase in cash and
cash equivalents 64 1,987 Cash and cash equivalents at
beginning of period 2,659 81,675 Cash and cash
equivalents at end of period 2,723 83,662
Note: New Taiwan Dollars have been
translated into U.S. Dollars at the December 31, 2018 exchange rate
of NT $30.72 per U.S. Dollar.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190129005376/en/
Michael Lin / David WongUMC, Investor Relations+
886-2-2658-9168, ext.
16900jinhong_lin@umc.comdavid_wong@umc.com
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