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Chimei Innolux reports first gross profit since late 2010

Chimei Innolux reports first gross profit since late 2010

Taipei, Oct. 29 (CNA) Taiwan's Chimei Innolux Corporation announced Monday that its gross profit in the third quarter of 2012 was positive for the first time since it fell into negative territory in the fourth quarter of 2010. The flat panel maker reported a gross profit of NT$4.25 billion in the third quarter and had a gross profit margin of 3.3 percent. Chimei Innolux still posted a loss per share of NT$0.51 (US$0.017), however, though it was much improved from a loss per share of NT$1.35 in the previous quarter. Chimei Innolux Chairman Tuan Hsing-chien said in an online investor conference that the positive gain was due to the company's spin-off of its system assembly line and touch panel unit, which significantly streamlined its labor force and reduced its labor costs. The company expected its capital expenditure to hit NT$18 billion this year. It spent NT$11.7 billion in the first three quarters and is likely to spend about NT$6 billion in the fourth quarter, Tuan said. He added that the company's capital expenditure will be about NT$18 billion to NT$22 billion in 2013, which will be spent mainly on developing new products and acquiring new technologies. Tuan also refuted a local media report that representatives from China Electronics Panda Crystal Technology Corp. have visited Chimei in Miaoli County to discuss buying a stake in the panel maker. Tuan said the report was groundless and described the Chinese company's visit as a regular business encounter that was not related to the discussion of an acquisition. He stressed that Hon Hai Precision Industry Co. remains the major strategic investor in Chimei Innolux. Meanwhile, Wang Jyh-chau, president of Chimei Innolux's Tainan operations, estimated that the company's large-size panel shipments will likely be unchanged in the fourth quarter but the total surface area of the panels shipped will grow by five percentage points. Chimei Innolux is due to hold an investor conference Nov. 14, and many analysts are wondering whether the company will take on a new name now that Hon Hai has acquired full ownership of the company. Chi Mei Corp, one of the major shareholders of Chimei Innolux, withdrew from the board of directors of Chimei Innolux on June 28, leaving Hon Hai, another major shareholder, to run the company. (By Pan Chih-yi and Ann Chen)


Updated : 2021-03-05 10:02 GMT+08:00