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February 6, 2008 |
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AU OPTRONICS: TV Screens Fuel Profit and Expansion AU Optronics Corp. plans to spend up to TWD140 billion on new facilities and equipment in 2008, as it reports a robust net profit in the fourth quarter, Taipei Times reports. According to the Taipei Times, the company reported that revenues jumped 64% year-on-year to TWD155.5 billion, ultimately translating to a TWD33.1 billion net profit for the last quarter of 2007, soaring from the TWD1.65 billion from a year before. Forty-seven percent of the company's revenues came from TV screens, the Taipei Times reveals. AU Optronics disclosed that with the expectation of higher demand for bigger TV screens, the company will more than double its capital spending this year. The Times quotes AU general manager Chen Lai-juh as saying that the company it will create a new 8.5-generation production line at 7.5-generation factory in Taichung, taking up around 28% of the TWD140 billion capex budget. The Times also recounts that the company is scheduled finish the new plant by the end of the year and launch the new production line with a monthly output of 40,000 sheets in the second half of 2009. Mr. Chen confirms that the move was in direct response to its competitors' recent capacity expansion plans A Bloomberg News report states that rivals, Chi Mei Optoelectronics Corp. and LG.Philips LCD Co., are planning to expand manufacturing after profit gained as more consumers picked the displays over plasma screens and traditional cathode- ray tube television sets. About AU Optronics Taiwan-based AU Optronics Corp. -- http://www.auo.com/ -- designs, develops, manufactures, assembles and markets flat panel displays. The company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. AU Optronics carries Fitch's BB long-term local and foreign currency issuer rating. |
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