AU Optronics (AUO) today announced its operating profits reached NT$7.9 billion (around US$244 million) in the first quarter of this year. The results were down 17.2% sequentially from the fourth quarter of last year but surpassed the levels posted by industry rivals Samsung Electronics (its LCD division) and LG.Philips LCD.
Samsung reported recently the operating profits from its LCD division dropped 73% sequentially to 110 billion won (around US$116 million) while profits from LG.Philips LCD were also down 84% sequentially to 52 billion won (around US$54 million).
AUO was able to keep its profits from dropping significantly during the slow season because it was successful at controlling costs, said KY (Kuen-Yao) Lee, chairman and CEO of AUO.
The company saw its consolidated sales slide 9% sequentially to NT$66.3 billion (around US$2.1 billion) in the first quarter, as its large-size panel shipments decreased from 9.6 million units in the fourth quarter of last year to 9.4 million in the first quarter. The ASP (average selling price) dropped 3-4 percentage points on the appreciation of the Taiwan dollar, according to Max Cheng, vice president and CFO of AUO.
Despite reporting better operating profits than its rivals in the first quarter, AUO's inventory turnover days exceeded those reported by Samsung's LCD division and LG.Philips LCD.
AUO's inventory turnover days rose from 28 days to 35 days in the first quarter. Inventory levels at Samsung's LCD division remained at eight days while LG.Philips LCD saw its inventory levels increased to above three weeks.
Article edited by Carrie Yu
