Despite slumping panel prices and rumors that some Taiwan-based panel makers will have to lower their financial forecast for this year, AU Optronics (AUO) and Chunghwa Picture Tubes (CPT) will likely achieve their 2004 pre-tax profit goals since they will see strong profits in the third quarter, according to sources.
AUO recorded NT$26 billion in pre-tax profits in the first half of this year, reaching 63% of its full-year forecast (NT$41.5 billion). The company will likely earn another NT$5-7 billion in the third quarter, industry sources estimate. If prices stabilize in the fourth quarter, AUO should achieve its 2004 forecast, the sources indicated.
CPT is also likely to reach its full-year forecast for pre-tax profits (NT$17.7 billion) since it earned NT$12.6 billion in the first half (71% of full-year forecast) and will have NT$3 billion of pre-tax profits in the third quarter.
In related news, Quanta Display was the first Taiwan-based panel maker to achieve its profitability target for 2004. In the first half of this year, the company had pre-tax profits of NT$7.1 billion, which exceeded its 2004 forecast of NT$6.1 billion. Sources expect the company to raise its financial forecast for the year after it releases its sales report for the third quarter.
In an October 1 article, Chi Mei Optoelectronics (CMO) and HannStar Display denied rumors they will have to lower their financial forecast for 2004 since the two companies have currently achieved a relatively small percentage of their full-year forecast.
Article translated by Carrie Yu and edited by Michael McManus
