AU Optronics Corp. (AU Optronics) has reported revenues of TWD423.9 billion for the year 2008, down 11.7%, compared with the revenues in the previous year-end. It has also reported a net income of TWD21.6 billion, or TWD2.5 per share, for the year 2008.
AU Optronics has announced unaudited results for fourth quarter of 2008 and the fiscal 2008. For the fourth quarter ended December 31, 2008, AUO posted consolidated revenue of TWD59,750 million ($1.8 billion), net loss of TWD26,595 million ($812 million), attributable to equity holders of the parent company TWD26, 565 million ($811 million), and basic LPS TWD3.12 per common share ($0.95 per ADR unit).
Fourth Quarter Result Highlights:
AUO reported the following unaudited consolidated results for the fourth quarter:
Revenue decreased by 42.6% Q-o-Q to TWD59.8 billion.
Net loss of TWD26.6 billion.
Basic LPS of TWD3.12 per common share.
Gross loss of 35%.
Operating loss of 44.3%.
Full Year Result Highlights:
AUO reported the following consolidated results for the full year:
Gross margin of 13.1%
Operating margin of 7.2%
“Due to continued repercussion caused by the global financial crisis and sluggish market demands, the shipments of large-sized panels in 4Q2008 resulted in 27% Q-o-Q decrease, with average selling price down by 28%. Meanwhile, the shipments of small- and medium-sized panels were also down by 23% comparing with previous quarter. Nevertheless, these numbers are in line with the Company’s revised 4Q2008 guidance,” said Max Cheng, vice president and chief financial officer of AUO, “Following the Company’s longstanding operation practice of not storing inventories, the Company has adopted the newly enacted Statement of Financial Accounting Standards (SFAS) No. 10, also known as accounting standard No. 10, since 4Q2008. Impacted by gross loss and low loading rate, the net loss in 4Q was higher than it was anticipated. But the net value of inventories has reduced to TWD23.6 billion, a substantial 40.8% Q-o-Q drop. The Inventory Turnover Days had also reduced to 36 days in 4Q from 40 days in 3Q, which had further strengthened the Company’s effective management over its inventory.”
“The Company was able to manage its Net Debt to Equity Ratio in a reasonable scale, despite the increase from 19.0% in 3Q to 26.5% in 4Q. In terms of overall result in 2008, the Company was able to post 13.1% consolidated Gross Margin, as well as 7.2% Operating Margin amid the global economic downturn that has impeded all sectors around the world,” added Cheng, “In 2009, AUO is to carefully manage its Capital Expenditure and continue to maintain a cautious position in terms of its capacity input in accordance with market demands. Furthermore, the Company is to continue strengthening its Research and Development efforts, as well as seeking innovative methods to improve its manufacturing processes, in a bid to enhance its long term competitiveness and to ensure its best readiness in coping with future business opportunities when the cycle turns positively.”