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Innolux reports better-than-expected Q1 earnings

Innolux reports better-than-expected Q1 earnings

Taipei, May 5 (CNA) Innolux Corp. (??), one of Taiwan's leading flat panel makers, on Tuesday reported first-quarter earnings per share of NT$0.87 (US$0.03), a figure that analysts said had exceeded market expectations. At an investor conference, Innolux said that due to the first-quarter slow season, its EPS for that period was below the NT$1.13 recorded in the previous quarter but was much higher than the NT$0.02 in the same period of last year. "The first quarter EPS beat the market estimate of about NT$0.8 as Innolux recorded a higher gross margin for the quarter," Marbo Securities Investment Consulting analyst Chang Chih-cheng said. "The higher gross margin largely reflected an improvement in the company's product portfolio." In the first quarter, Innolux's gross margin rose to 17.7 percent from 16.1 percent in the fourth quarter of last year. Chang said certain products that had higher profit margins, such as ultra-high definition screens, weighed more in the company's product mix in the first quarter. Innolux posted NT$8.65 billion in net profit for the first quarter, down 22.4 percent from NT$11.15 billion the previous quarter, but up sharply from NT$153 million in the same period of last year. The flat panel maker's consolidated sales for the January-March period stood at NT$100.16 billion, down by a quarterly 12.9 percent but up almost 12 percent year-on-year. In the first three months of the year, Innolux shipped 7.01 million square meters of flat screens, a quarterly 12.8 percent drop but a year-on-year increase of 9 percent. Innolux said TV panels accounted for 54 percent of its total sales in the first quarter, compared with 51 percent seen in the previous quarter, and remained the biggest sales contributor, followed by screens for portable computers (15 percent) and panels for desktop computers (12 percent). As of the end of the first quarter, Innolux's total debt was NT$79.5 billion, down NT$51.5 billion from the previous quarter, indicating stronger financial health. Innolux said that new production lines in its Kaohsiung plant will begin commercial operation in the third quarter of next year, churning out low temperature polysilicon panels. The new production lines, being built by Innolux and its major shareholder Hon Hai Precision Industry Co. (??), the world's largest electronics maker, will have a monthly capacity of 40,000 units. Innolux estimated its capital expenditure at NT$35 billion for 2015 and a similar amount for 2016. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-24 23:00 GMT+08:00