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Chimei Innolux's bottom line improves in Q1

Chimei Innolux's bottom line improves in Q1

Taipei, May 1 (CNA) Chimei Innolux Corp., one of Taiwan's leading flat panel makers, reported Monday that its bottom line improved in the first quarter, with losses down from the previous quarter largely due to efforts to keep production costs down. In the January-March period, Chimei Innolux posted a net loss of NT$12.77 billion (US$437 million), compared with NT$19.99 billion a quarter earlier, after the company's sales fell 16.2 percent quarter-on-quarter to NT$109.24 billion. Loss per share was NT$1.75, lower than the minus NT$2.73 posted in the fourth quarter of 2011, while gross margin improved to minus 6.2 percent from minus 8.2 percent a quarter earlier, the company said. Chimei Innolux's shipments of large-sized flat screens for TVs, desk top computers, monitors and notebook computers totaled 32.36 million units in the first quarter, down 8.6 percent quarter-on-quarter, and their average selling price was US$86 (NT$2,514), down from US$89 a quarter earlier. The company's shipments of small and medium-sized panels during the same period fell 21.5 percent to about 90.3 million units. In the first quarter, screens for TVs, desk top computers, and notebooks accounted for 36 percent, 25 percent and 11 percent, respectively, of Chimei Innolux's total sales, the company said. Chimei Innolux Chairman Tuan Hsing-chien said at an investor conference that the falling average selling price for large-sized flat screens reflected a change in the company's product portfolio. Tuan also noted that the company's capacity utilization had improved to between 80 percent and 85 percent, higher than the industry average, after recent efforts to adjust the company's inventory position. Capacity utilization for the April-June period could rise to 90 percent, Tuan said, as shipments of large panels are expected to grow 10 percent on stronger demand. Due to improving market conditions, Chimei Innolux ruled out the possibility of relocating its production lines to China or Brazil, at least for the moment, as it had planned previously. Meanwhile, Tuan said Chimei Innolux's 3.5-generation plant is scheduled to roll out small and medium-sized active matrix organic light-emitting diode (AMOLED) panels using the low temperature poly-silicon (LTPS) technology process at the end of this year. Earlier, rival AU Optronics Corp. also reported a smaller loss for the first quarter of this year, at NT$13.8 billion, compared with a net loss of NT$20.99 billion recorded a quarter earlier. (By Pan Chi-I and Frances Huang)


Updated : 2020-12-05 02:54 GMT+08:00