Leading panel suppliers Innolux, AUO see revenues slump on lack of demand

By Lisa Wang  /  Staff reporter

Sat, Mar 08, 2014 - Page 14

The nation’s two largest LCD panel makers, Innolux Corp (群創光電) and AU Optronics Corp (AUO, 友達光電), yesterday reported monthly declines in revenue of about 10 percent for last month, as slackened demand curtailed shipment of TVs and PCs in the slow season.

Innolux’s revenue shrank 9 percent to NT$24.87 billion last month, compared with NT$27.37 billion in January, hitting its weakest level in four years, while AUO’s revenue dropped 10.8 percent to NT$28.18 billion from NT$31.6 billion, its lowest level in a year.

Innolux saw its shipments of PC and TV panels fall 10.8 percent to 8.94 million units last month from a month ago, compared with a monthly decline of 6 percent to 9.19 million units at AUO.

The firms expected shipments of PC and TV panels to slip by between a high-single-digit and a low-teens percentage for this quarter, citing seasonally weak demand.

Market researcher NPD DisplaySearch said on Monday that TV panel prices continued a downward spiral in the first half of this month due to excessive supply.

The prices of mainstream 32-inch TV panels fell 1 percent to US$76 per unit in the first two weeks of this month from two weeks ago, NPD DisplaySearch said.

Since the beginning of the year, the price of 32-inch TV panels has declined more than 6 percent, the researcher’s statistics showed.

Global major flat-panel makers reduced their equipment loading rates last month to ease the supply glut, but they are also considering boosting factory usage this month to cope with expected inventory replenishment demand from Chinese TV makers before China’s Labor Day shopping season in May, the US researcher said.

HannStar Display Corp (瀚宇彩晶), focused on small and medium-sized LCD panels, reported that revenue fell 6.7 percent month-on-month to NT$1.76 billion last month from NT$1.87 billion, while Chunghwa Picture Tubes Co (中華映管) saw revenue rise 1.4 percent to NT$4.67 billion last month, compared with 4.61 billion in January.