Innolux sales fall as China subsidy program ends

FLAT PANELS::Another panel maker, AU Optronics, also saw sales drop in June. Demand continues to look weak, with TV panel prices declining further this month, WitsView said

By Lisa Wang  /  Staff reporter

Wed, Jul 10, 2013 - Page 13

Innolux Corp (群創光電), the world’s fourth-biggest LCD panel supplier, yesterday said that revenue last month declined for a third month in a row, after China ended a multi-year subsidy program for the purchase of energy-efficient TVs.

Revenue dropped 11.6 percent to NT$33.14 billion (US$1.1 billion) last month, from NT$37.47 billion in May. That brought last quarter’s revenue down 4.5 percent to NT$111.52 billion, from NT$116.78 billion in the first quarter.

Last month, Innolux shipped 12.38 million PC and TV panels, down 5.8 percent from May’s 13.14 million units. On a quarterly basis, however, shipments of PC and TV panels still rose 16.5 percent to 37.75 million units from the previous quarter, matching the company’s forecast of a percentage sequential growth in the high teens.

Company president Wang Jyh-chau (王志超) said last month that China’s decision to stop subsidizing purchase of energy-efficient TVs after May would not significantly affect the company’s business and expected demand to recover before the October holiday.

Prices for mainstream 32-inch TV panels dropped 2.1 percent in the first half of this month to US$99 per unit, from two weeks ago, in a sign of weakening demand, according to the latest statistics provided by market researcher WitsView.

Prices for 39-inch and 42-inch TV panels also fell 1.3 percent and 0.7 percent to US$152 per unit and US$269 per unit respectively during the same period, WitsView said.

Innolux’s shipments of small-sized panels for smartphones and tablets shrank 3.7 percent last month to 37.72 million units from 39.16 million units in May.

Last quarter, shipments of smaller-sized panels only increased 7.3 percent sequentially to 115.63 million units from 107.81 million units, falling short of the company’s forecast of growth in the low teens quarter-on-quarter.

AU Optronics Corp (AUO, 友達光電), the nation’s second-largest flat panel maker, yesterday also reported sales results last month, which slid 3.3 percent to NT$37.03 billion from May’s NT$38.3 billion. Despite the fall, AU Optronics’ second-quarter revenue still rose 19.2 percent to NT$112.34 billion, from the first quarter’s NT$94.24 billion.

The company’s shipments of large-sized panels grew 13.2 percent last quarter from 27 million units in the first quarter, while shipments of small-sized panels grew 19.2 percent to 36.58 million units.

Innolux and AU Optronics shares rose 1.02 percent and 1.45 percent to NT$14.25 and NT$10.50 respectively yesterday.