Flat-panel maker AU Optronics Corp (AUO, 友達光電) yesterday reported that net profit last quarter almost tripled as stay-at-home and remote-working trends bolstered demand for larger-screen TVs and computers.
Net profit rose to NT$8.44 billion (US$297.37 million) from NT$2.89 billion in the prior quarter and a net loss of NT$8.83 billion from a year earlier, the company said.
That lifted the company’s full-year net profit to NT$3.38 billion, or earnings per share (EPS) of NT$0.36. It posted a net loss of NT$19.19 billion in 2019.
Photo: Chen Mei-ying, Taipei Times
“Computers have become an essential tool for people, as they have to work, learn and entertain during the [COVID-19] pandemic-driven lockdowns,” AUO chairman Paul Peng (彭双浪) told investors in a virtual conference.
“As people are forced to stay at home longer, demand for more TVs, large-screen ones in particular, has also risen,” he said.
AUO expects last quarter’s growth momentum to extend into this quarter as COVID-19 restrictions continue.
Panel prices are expected to rise by a high single-digit percentage this quarter from last quarter in US dollar terms, after surging 13 percent sequentially and 26 percent from a year earlier to US$376 per square meter last quarter.
However, shipments are forecast to slide by a high single-digit percentage this quarter from last quarter due to supply constraints for key components, chief financial officer Benjamin Tseng (曾煜智) said.
The Hsinchu-based company said that supply of glass and driver ICs is tight.
Factory utilization rate is forecast to remain high at about 95 percent this quarter, Tseng said, adding that the company plans to postpone its annual maintenance, usually in the first quarter, to increase output.
To cope with rising demand, AUO plans to spend NT$22 billion to expand its panel capacity, mainly for computer-related applications. That would represent an increase of 41 percent from NT$15.6 billion last year.
INNOLUX
Separately, Miaoli-based panel maker Innolux Corp (群創) yesterday said that net profit last quarter jumped to a three-year high of NT$10.14 billion, compared with NT$1.54 billion in the previous quarter and a net loss of NT$6.86 billion a year ago.
For the full year, Innolux made a net profit of NT$1.64 billion, or EPS of NT$0.17, compared with a net loss of NT$17.44 billion in 2019, it said.
“Due to the pandemic, demand for information technology [products] and TV panels is increasing. The first quarter will not be as slow as it was before,” Innolux said in a statement.
Panel prices are expected to rise by a high single-digit percentage this quarter, while shipments of large panels would be flat this quarter and those of smaller panels would drop by a low single-digit percentage from last quarter, it said.
The company’s directors yesterday approved a capital expenditure budget of NT$25 billion for this year, up 20.77 percent from NT$20.7 billion last year.
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