Formosa Plastics cuts bonuses after profit slump

TAIPEI (TVBS News) — Formosa Plastics Group (台塑集團) announced on Friday (Jan. 10) its year-end bonus plan, revealing a reduction due to an 80% profit decline in 2024. The group will issue bonuses of three months' base salary, deviating from the usual 4.5 months. The four major companies under Formosa — Formosa Plastics (台塑), Nan Ya Plastics Corporation (南亞), Formosa Chemicals & Fibre Corporation (台化), and Formosa Petrochemical Corporation (台塑化) — faced challenges from China's sluggish housing market, weak domestic demand, and increased local petrochemical production capacity.

These factors contributed to a combined after-tax net profit of NT$8.37 billion, marking the worst performance in over 20 years. Formosa Plastics Group explained that the year-end bonus calculation is based on average pre-tax earnings per share (EPS) of NT$4.1, which typically results in a 4.5-month bonus. The group adjusts the bonus by 0.6 months for every NT$1 change in EPS. The average pre-tax EPS 2024 was NT$0.29, leading to the minimum bonus of three months' base salary.

Looking ahead to 2025, Formosa remains cautiously optimistic about an improvement in the petrochemical market compared to 2024. However, the group expressed concerns over the potential impact of Trump's tariff policies on the strength of economic recovery.