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AUO board okays investment proposals

AU Optronics Corp (AUO, 友達光電), the world’s third-largest maker of computer and television flat panels, yesterday said its board had approved three investment proposals, including setting up a new TV panel plant in eastern Europe.

The liquid-crystal-display (LCD) maker plans to build a panel plant in Europe primarily for assembling TV panels and to better serve its customers and avoid import taxes.

The company will make a final decision by the third quarter about its total investment and the location. Poland, the Czech Republic and Slovakia are on its short list.

The company also plans to invest an additional US$80 million in its panel plant in Xiamen, Fujian Province, China.

The board also approved a plan to spend NT$1.5 billion (US$49.5 million) to set up a light emitting diode (LED) subsidiary to secure its backlight supply and keep its costs competitive. The board agreed to a proposed cash dividend of NT$2.5 per share and a 5 percent stock dividend based on last year’s earnings of NT$56.5 billion.

AUO joins Samsung Electronics in reporting LCD earnings that beat analysts’ estimates this week after surging demand boosted prices.

On Tuesday, AUO reported first-quarter net income of NT$26.98 billion, up from a net loss of NT$5.11 billion in the same period last year.

The average selling price for screens used in PCs and TVs rose 26 percent year-on-year to US$178 per unit, the company said.
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