AU Optronics Corp (AUO, 友達光電), the nation’s No. 2 LCD panel maker, yesterday posted its quarterly net profit for last quarter — its best in four years — as strong replacement demand for corporate PCs and large-size TVs caused supply constraints and boosted prices.
AUO expects short supply to carry into this quarter as the seasons for China’s October shopping and year-end holiday shopping in the US and Europe approach.
“As the industry is entering the peak season, we are seeing TV brands aggressively build inventories,” AUO chief executive officer Paul Peng (彭双浪) told an investors’ conference.
TV, PC SHIPMENTS
AUO expects shipments of flat panel TVs and PCs to be flat or to fall slightly this quarter from the 28.9 million units shipped last quarter, due to limited capacity.
Factory utilization would remain at 95 percent this quarter, the same as it was last quarter, the company said.
AUO plans to ship more larger-sized and higher-margin TV panels this quarter to drive up its average selling price (ASP), while shipments of small and medium-sized panels would grow by 5 to 8 percent from 46.3 million units last quarter, it said.
Overall, the company said it would benefit from the supply and demand situation, as global demand is forecast to rise by between 7 and 9 percent this year compared with a 6 percent increase in panel supply.
SOARING PROFIT
Last quarter, AUO’s net profit soared 23 fold to NT$4.02 billion (US$134 million), from NT$166 million in the first quarter, beating the NT$3.4 billion estimate made by UBS, thanks to robust demand for TVs in Latin America and developed European countries during the FIFA World Cup.
NOTEBOOK DEMAND
Meanwhile, demand for notebook computers rebounded last quarter after Microsoft Corp ended customer support for its Windows XP operating system, the company said.
AUO yesterday said it would stick to its capital budget of between NT$20 billion and NT$25 billion for this year.
AUO shares rallied 3.38 percent to NT$13.75 in Taipei trading yesterday.
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