08.21.2001
Mounting losses at Mosel

• Development: Mosel reported pretax losses of NT$7.2bn for 1H01. Firm claims total losses for the year may reach NT$10.0bn due to depressed DRAM price. However, Mosel has strong finances with NT$14.3bn cash on hand.

• Analysis: Mosel’s pretax loss of NT$2.1bn in 1Q01 widened by 142% to NT$5.1bn in 2Q01. We expect further losses in 3Q01, as DRAM price will likely remain weak.

• Primasia View: Company reported the worst 1H01 results in the DRAM sector . We believe the firm will remain loss making thru 2H01.