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Innolux stays profitable in Q2

Innolux stays profitable in Q2

Taipei, July 28 (CNA) Coming off a profit in the first quarter, Taiwan-based flat panel supplier Innolux Corp. said Monday that it continued to report a net profit for the April-June period after shipping more displays. In the second quarter, Innolux posted about NT$3 billion (US$100 million) in net profit, a jump from the NT$153 million net profit seen in the first quarter. Its second quarter earnings per share stood at NT$0.33, compared with NT$0.02 registered in the previous quarter. Innolux shipped 31.47 million large-sized panels over the three month period, up 18 percent from a quarter earlier, and 86.90 million small- and medium-sized displays, up 11.6 percent sequentially. Flat panel consolidated sales rose 24 percent from a quarter earlier to NT$111.06 billion, with TV panels accounting for 46 percent of sales, up slightly from 44 percent in the first quarter. At an investor conference, Innolux President Wang Jyh-chau said that the company benefited from a tight supply in the second quarter on solid demand, and he expects demand will remain high in the third quarter, a peak season for the industry. Wang said Innolux's production capacity was fully utilized in the second quarter, a trend likely to continue into the third. However, he still anticipates that Innolux's supply will not be able to meet customers' rising demand. As Innolux will not raise production capacity in the third quarter, shipments are expected to stay little changed from the second, but the average selling price will increase from the second quarter's US$459 per square meter. In the second quarter, Innolux witnessed its gross margin climb to 10.4 percent from the first quarter's 6.4 percent, while the company's operating margin also rose 5.5 percent from 1.5 percent. Innolux said that the company continued to improve its financial structure by cutting its total debt for the second quarter by NT$34.8 billion from a quarter earlier to NT$148.9 billion. In addition, the company's net debt to equity ratio for the second quarter fell to 64.3 percent from 76.6 percent a quarter earlier. (By Pan Chi-i and Frances Huang)


Updated : 2021-07-25 13:50 GMT+08:00