07.31.2001
UMC’s 2Q results to be announced this afternoon

• Development: UMC will officially post 2Q01 results this afternoon. We expect an operating loss of NT$1.2bn and pretax loss of NT$2.0bn.

• Analysis: The company will likely use some tax credit, which amounts to NT$14bn (end 1Q01) to cushion the after-tax loss. We also estimate 3Q01 revenue to be flattish and down 15-18% from 2Q levels.

• Primasia View: Current market weakness suggests opportunity to accumulate shares that look oversold.