AUO Third Quarter 2008 Unaudited Consolidated Financial Highlights:
AUO Corporation ("AUO"or the "Company") (TAIEX: 2409; NYSE: AUO) today announced its third quarter 2008 unaudited consolidated revenues of NT$104.1 billion and net income of NT$ 860 million, which attributable to equity holders of the parent company was NT$806 million. And, basic EPS equaled NT$0.09 per common share (US$0.03 per ADR). For the first nine months of 2008, AUO’s consolidated revenues totaled NT$364.2 billion (US$11.3 billion), net income NT$48.2 billion (US$1,497 million), which attributable to equity holders of the parent company was NT47.8 billion (US$ 1,484 million), and basic EPS NT$5.62 per common share (US$1.74 per ADR).
Overall, the company shipped large-sized panel of 20.72 million units in the third quarter of 2008, a 5.2% sequential decrease and a 6.9% YoY decrease. Small- and medium-sized panel shipments in the third quarter amounted to 61.12 million, a significant increase of 45.9% QoQ and 50.2% YoY respectively.
Mr. Max Cheng, CFO and Spokesperson of AUO noted, “Our ASPs for large-sized PC panels and TV panels in the third quarter declined by 30.6% and 12.4% QoQ respectively, primarily due to a weakening macroeconomic environment and consumers’ cautious spending. Even small- and medium-sized panel shipments posted a remarkable result, plus TV panel shipments met our previous expectation, the third quarter results were only partially in line with our guidance. Through strict cost control, adjustment in capacity utilization rates and product mix, we are able to maintain our inventory within 40-day level, and deliver a gross margin of 8.0% and operation margin of 2.6% for 3Q’08. To overcome the challenges from the severe economic environment, we will continue adjusting the loading rates based on the current market demand.” With the innovation of product development and process optimization, AUO will cautiously evaluate its capital investment and strengthen its competitiveness to defy economic morass.
“AUO will keep stringently controlling costs while improving the technology innovation. We will also solidify the long-term relationship with our clients by offering highly value-added products,” said Dr. LJ Chen, the President of AUO. Dr. Chen also unveiled the future plans of AUO, including reinforcing the relationship with TV clients through the TV set assembly business, and investing in LED and Photovoltaic technology, to enhance AUO’s overall competitiveness during the slow season.
* Amounts converted by an exchange rate of NTD32.23 :USD1 as of September 30, 2008.
* All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”)