BETTER PROSPECTS: The LCD panelmaker expects its customers to complete their inventory digestion this quarter and for TV panel demand to pick up next quarter

Taipei Times
Date: Apr 27, 2018
By: Lisa Wang  /  Staff reporter

LCD panelmaker AU Optronics Corp (AUO, 友達光電) yesterday reported that its first-quarter net profit dropped more than half on weaker-than-expected TV demand from China due to excess inventory.

Despite an unfavorable pricing environment, AUO still posted an operating profit of NT$2.95 billion (US$99.3 million) in the first three months of the year, outperforming bigger South Korean rival LG Display Co, which unexpectedly posted a net loss of 49 billion won (US$44.5 million).

“Demand cooled off in the first quarter, which was, as usual, a slow season,” AUO chairman and chief executive officer Paul Peng (彭雙浪) told investors. “However, AUO performed relatively well as its efforts to boost its products’ value bore fruit. The quarterly [operating] profit matched our expectations.”

The company delivered a better earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 16 percent last quarter, compared with LG Display’s 14 percent.    [FULL  STORY]