NO FINANCIAL CRISIS:Though the downturn has sent the market into a quandary, LCD panelmakers are remaining calm as the slump tests AUOs’ new financial structures
Date: Aug 27, 2015
By: Lisa Wang / Staff reporter
AU Optronics Corp (AUO, 友達光電) yesterday said the recent industry slowdown, primarily caused by the faltering Chinese economy, is much milder than the last slump during 2008-2009 global financial crisis and the company is well-prepared to ride out the downturn.
The last industry downcycle, which saw weak demand and a price crunch, brought the nation’s major LCD panelmakers to the verge of bankruptcy, as they were unable to generate sufficient cash to repay piling debts.
“Recent global economic weakness hurts demand for consumer electronics and flat panels, meaning that we will not experience strong seasonal demand as usual in the second half,” AUO chairman and chief executive officer Paul Peng (彭雙浪) told reporters on the sidelines of the annual Touch Taiwan display show in Taipei. [FULL STORY]