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HannStar blames weak panel prices for growing losses

HannStar Display Corp (瀚宇彩晶), one of Taiwan's leading suppliers of flat screens, yesterday posted its third consecutive quarterly losses as prices collapsed in the wake of a supply glut.

The loss was HannStar's biggest in the past three quarters and also the poorest performance among five major Taiwanese makers of liquid-crystal-display (LCD) panels for computer monitors and televisions.

But the situation may improve in the current quarter on stabilizing panel prices, the company said.

"I believe our financial results will improve significantly in the second quarter on rising prices," HannStar president Davie Chou (周定輝) said.

Prices should rise 15 percent quarter-on-quarter and shipments are expected to grow by as much as 20 percent from 2.31 million units last quarter, he said.

First-quarter losses widened to NT$4.5 billion (US$143.9 million) from NT$1.77 billion in the final quarter of last year. Losses per share before tax deteriorated to NT$0.85 from NT$0.35 quarter-on-quarter.

Chou blamed a persistent decline in the prices of 15-inch LCD screens over the past few quarters for the expanding losses.

After overcoming technological barriers at its fifth-generation (5G) factory, Chou said HannStar is expanding the production of bigger LCD screens, including 17-inch and 19-inch screens. The company will also start making 23-inch and 26-inch TV screens by the end of this year, he said.

With the 5G plant to become fully operational next quarter, Chou expects the company could save another 20 percent in operating costs.
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