Innolux Corp (群創), the nation’s largest LCD panel maker, yesterday posted its deepest first-quarter loss in about four years, citing crumpling prices and production disruption due to a strong earthquake.
Net loss totaled NT$8.58 billion (US$262.98 million) in the January to March quarter, the second consecutive quarterly loss following a net loss of NT$6.72 billion in the final quarter last year.
A year ago, the company made a net profit of NT$8.65 billion.
Last quarter’s losses were the worst quarterly results since the second quarter of 2012 and fell short of most analysts’ expectations.
Prior to the release of last quarter’s results, CIMB Securities Ltd analyst Eric Lin (林育名) expected Innolux to lose NT$7.2 billion in the first three months of this year, while Yuanta Securities Investment Consulting Co (元大投顧) analyst Chen Chuan-chuan (陳娟娟) forecast a quarterly loss of NT$7.77 billion.
Gross margin drifted to minus-7.16 percent in the first quarter, compared with 3.1 percent in the previous quarter and 17.7 percent a year ago.
The company’s operating loss swelled to NT$8.4 billion last quarter, from an operating loss of NT$2.9 billion in the previous quarter. Consolidated revenue plunged 30.7 percent to NT$56.42 billion from NT$81.46 billion in the previous quarter.
Shipments of PC and TV panels declined 23.8 percent quarterly to 22.91 million units after a strong earthquake in February disrupted the company’s production lines in Tainan County, where Innolux operates eight factories.
Shipments of small and medium-sized panels also slid 31.8 percent quarter-on-quarter to 47 million units.
Innolux said that all the quake-affected production lines resumed operations in March.
IHS Technology expects panel prices to bounce back this quarter, but such a mild rebound will not be strong enough to help panel makers swing back to profits, IHS analyst David Hsieh (謝勤益) said last month.
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