CMI, AUO likely to swing back to profitability in 2H12
Chimei Innolux (CMI) and AU Optronics (AUO) are likely to swing back to profitability in the second half of 2012 as flat panel prices are expected to continue running higher in the second and third quarters, according to industry sources.
AUO has been operating in the red since the fourth quarter of 2010 and accumulated total losses of NT$73 billion (US$2.47 billion) in the five consecutive quarters prior to the first quarter of 2012, while CMI also posted accumulated losses of NT$92 billion during the same period.
However, thanks to a recent improvement in the supply-and-demand situation in the panel industry, prices of some large-size panels were hiked in March 2012, and consequently quotes for nearly all sizes of panels received a boost in April, the sources indicated.
CMI and AUO each are expected to narrow their losses to NT$15-18 billion in the first quarter of 2012 compared to over NT$20 billion recorded in the four quarter of 2011 although both posted a sequential decline in revenues in the first quarter, the sources estimated.
AUO recorded revenues of NT$81.1 billion in the first quarter of 2012, down 9.4% on quarter. However, AUO saw its large-size panel shipments gain 1.8% sequentially to 27.25 million units in the quarter and small- to medium-size panel shipments slip 21.1% to 36.67 million units.
During the same quarter, CMI saw its revenues drop 16.2% to NT$109.27 billion, large-size panel shipments declined 8.6% to 32.36 million units, and small- to medium-size panel shipments slid 21.5% to 90.3 million units.
Due to end market demand, the supply of flat panels is expected to become tight in the third quarter, further pushing up panel prices, the Chinese-language Commercial Times quoted David Hsieh, vice president at DisplaySearch as saying. Hsieh also predicted that panel prices will continue to trend up by 2-3% on month in the next few months.
According to DisplaySearch, global shipments of smartphones will increase to 779 million units in 2012 from 518 million units in 2011, tablet PC shipments will expand to 135 million from 78 million, notebook shipments will grow to 241 million from 223 million, and LCD TV shipments will edge up to 233 million from 210 million. LCD monitor shipments will drop to 196 million units from 197 million.
AUO has been operating in the red since the fourth quarter of 2010 and accumulated total losses of NT$73 billion (US$2.47 billion) in the five consecutive quarters prior to the first quarter of 2012, while CMI also posted accumulated losses of NT$92 billion during the same period.
However, thanks to a recent improvement in the supply-and-demand situation in the panel industry, prices of some large-size panels were hiked in March 2012, and consequently quotes for nearly all sizes of panels received a boost in April, the sources indicated.
CMI and AUO each are expected to narrow their losses to NT$15-18 billion in the first quarter of 2012 compared to over NT$20 billion recorded in the four quarter of 2011 although both posted a sequential decline in revenues in the first quarter, the sources estimated.
AUO recorded revenues of NT$81.1 billion in the first quarter of 2012, down 9.4% on quarter. However, AUO saw its large-size panel shipments gain 1.8% sequentially to 27.25 million units in the quarter and small- to medium-size panel shipments slip 21.1% to 36.67 million units.
During the same quarter, CMI saw its revenues drop 16.2% to NT$109.27 billion, large-size panel shipments declined 8.6% to 32.36 million units, and small- to medium-size panel shipments slid 21.5% to 90.3 million units.
Due to end market demand, the supply of flat panels is expected to become tight in the third quarter, further pushing up panel prices, the Chinese-language Commercial Times quoted David Hsieh, vice president at DisplaySearch as saying. Hsieh also predicted that panel prices will continue to trend up by 2-3% on month in the next few months.
According to DisplaySearch, global shipments of smartphones will increase to 779 million units in 2012 from 518 million units in 2011, tablet PC shipments will expand to 135 million from 78 million, notebook shipments will grow to 241 million from 223 million, and LCD TV shipments will edge up to 233 million from 210 million. LCD monitor shipments will drop to 196 million units from 197 million.
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