TMCnet News
AU Optronics boasts strong Q3 performance(China Post (Taiwan) Via Acquire Media NewsEdge) LCD panel maker AU Optronics Corp.'s (AUO) profitability reached the highest in 17 quarters as the company's aftertax profits reached NT$7.3 billion over the third quarter. Increased demand and higher prices contributed to the higher earnings, while a US$24 million fine levied by a U.S. court for the company's involvement in a pricefixing lawsuit eroded some of the company's earnings. Prices for panels used in TVs and information technology (IT) applications have reportedly gone up due to strained demand. In addition, AUO sold off its BenQ Materials Corp. stocks to pocket NT$228 million. AUO also reported a gross margin of 14.4 percent, an operating margin of 8.2 percent and earnings per share (EPS) of NT$0.76. In the span of the first three quarters, AUO's profits totaled NT$11.49 billion, contributing to an EPS of NT$1.21, which is higher than institutional investors' expectations. With the rosy thirdquarter performance, investors are upbeat that the company's annual EPS will exceed NT$1, the highest in nearly six years. While sales slowed in October in mainland China, the company is optimistic about its fourthquarter performance, as demand is likely to stay strong with Chinese New Year approaching. UMC Sales Grow Chipmaker United Microelectronics Corporation's (UMC) consolidated revenues totaled NT$35.21 billion in the third quarter, representing a 5.4percent growth yearonyear. The gross margin was pegged at 21.5 percent, while operating margin was at 4.8 percent. The company netted NT$2.92 billion, contributing to an EPS of NT$0.23. UMC Chief Executive Officer Yen Powen said the company has stepped up production to meet demand in the communication industry, which includes smartphones, tablets and other devices. Yen pointed out that 40nanometerrelated production accounted for 24 percent of UMC's sales in the third quarter, while 28nanometer production accounted for 3 percent, higher than the previous quarter, indicating that the company has gained traction in highend manufacturing processes. Yen is optimistic that this trend will continue into the fourth quarter, consequently attracting more customers and allowing UMC's chips to be more widely used. UMC wants to cooperate with partners in Asia to scale up operations and improve efficiency and ultimately win more global market share, Yen said. This not only will serve local customers better, but also reduce business risks, he added. |