AU Optronics Registers Worst Q4 Results in 5 Years

Taipei, Feb. 10, 2009 (CENS)--AU Optronics Corp. (AUO), the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, registered operation losses of NT$26.5 billion (US$803.03 million at US$1: NT$33) in the fourth quarter of 2008, for a net loss of NT$3.12 (US$0.09) per share.

The record quarterly loss dragged down AUO's net earning in 2008 to NT$21.64 billion (US$655.8 million), for earnings per-share (EPS) of NT$2.5 (US$0.08).

AUO announced that it plans to have capital spending of about NT$50 billion (US$1.52 billion) this year, only about half of last year's. The panel supplier suffered the worst quarterly result in the fourth quarter since its merger with Quanta Display Inc. in April 2006, with panel average selling prices (ASP) declined 15% while shipments decreased by 30%. The Taiwanese player's net and operating margins during the period were -35% and -44.3%, both record lows, compared with 0.8% and -7% of major South Korean rival LG Display (formerly LG.Philips LCD Co., Ltd.). LGD maintained EBITDA (earnings before interest, taxes, depreciation, and amortization) of 6%, while AUO recorded -8.4%.

At AUO's recent shareholders' meeting, H.B. Chen, AUO's vice-chairman, admitted that he is not optimistic about corporate operations this year, but AUO had more carefully conducted equipment amortization in the fourth quarter 2008, so the risks in the first quarter of 2009 should be lower.

Andy Yang, AUO's new chief financial officer (CFO), claimed that his company would control its cash outflow within NT$100 billion (US$3.03 billion) in 2009.

The panel supplier said that the TV-panel ASP is expected to remain lackluster in the first quarter, while information technology (IT)-panel ASP might rise a little due to rush orders.