Chimei Innolux's Loss Narrows to NT$1.75 Per Share in Q1
2012/05/04 | By Steve ChuangTaipei, May 4, 2012 (CENS)--Dedicated to production of TFT (thin film transistor) LCD and touch panels, Chimei Innolux Corp., a leading Taiwanese maker of display panels, effectively reduced its net losses to NT$12.766 billion, or NT$1.75 per share), in the first quarter of this year from NT$19.988 billion, or NT$2.73 per share, seen a quarter ago, according to the company's latest financial report.
At an investors' conference held a few days ago, the company's CEO H.C. Tuan said that Chimei Innolux, to focus on display panel manufacturing, has actively improved its capacity utilization of TFT LCD panels and boosted output of touch panels, while having halted its system assembly business since the end of March.
Perhaps the efforts have paid off, as the company's combined revenue amounted to NT$109.236 billion in the first quarter of this year, 34.7% higher than NT$81.102 billion posted by its Taiwanese peer AU Optronics Corp. (AUO) during the same period, with net losses of NT$12.766 billion lower than AUO's NT$13.796 billion.
In the meantime, Chimei Innolux spent only NT$3.4 billion on capital items and fixed assets in the quarter, and manages to control the spending at below NT$30 billion for the whole year. Tuan said that his company will dedicate the planned budget partly to reimbursements for the rest of payments for factory expansions carried out earlier, and partly to purchase of new equipment for touch sensor, AMOLED (active matrix organic light emitting diode) panel and oxide-TFT LCD production.
Tuan continued that his company is optimistic about better business outlook in the second quarter than the first quarter, partly because its capacity utilization rate has improved to over 90%, and partly because display panel prices have risen. Given that the market is stabilized as expected, Tuan said, the company will log growths of between 10% and 20% in shipments of both large-sized and small- and medium-sized panels in the quarter.
Noteworthily, Tuan also stressed that his company now has no plans of disposing any production lines, though such a plan was among its options for improving operating performance in the past when the industry struggled with a faltering market.
Chimei Innolux's Operating Performance in Q1, 2012 | ||
Combined Revenue | NT$109.236 Bn. | Down 16.2% quarterly |
Gross Profit Rate | - 6.2% | Improving from -8.2% a quarter ago |
Net Profits | - NT$12.766 Bn. | Improving from minus NT$19.988 billion a quarter ago |
Earnings per Share | - NT$1.75 | Improving from minus 2.73% a quarter ago |
Capacity Utilization Rate | 80-85% | ----- |