TAIPEI -- Yulon Nissan Motor Co., a joint venture between Taiwan's Yulon Motor Co. and Japan's Nissan Motor Co., expects net earnings per share in 2005 to exceed Taiwan $10, the company said on Tuesday.
That compares with Yulon Nissan's forecast of Taiwan $10.40 for this year, or net profit of Taiwan $3.12 billion ($96 million).
Earnings from a venture in China will contribute Taiwan $600 million to Taiwan $800 million to Yulon Nissan's bottom line, company President Liu Yi-Cheng told an investor conference for a Taiwan $1.6 billion initial public offering.
"Earnings should easily exceed Taiwan $10 per share," Liu said.
Yulon Nissan Motor Co. is the sales and marketing arm of Taiwan's third largest car maker, Yulon, and sells Nissan-branded cars on the island.
Yulon has also transferred ownership of its China operations to the joint venture, which was established last November with capital of Taiwan $3 billion.
Nissan, Yulon and China's Dongfeng Motor Corp. are cooperating to manufacture cars and trucks in mainland China.
Yulon will hold a 50-percent stake in the venture after releasing 10 percent via the IPO and a private placement. Nissan holds the remaining 40 percent stake.
Liu confirmed the IPO of 20 million shares was priced at Taiwan $80 per share, which was lower than earlier market estimates of up to Taiwan $95 per share.
The price is 7.7 times forecast 2204 earnings and the shares will be listed on the Taiwan stock exchange on Dec. 21.
Taiwan's largest automaker by sales is Hotai Motor Corp., which sells Toyota cars.