Home > News > Company News > AU, Chi Mei cut Q4 LCD shipments forecasts

AU, Chi Mei cut Q4 LCD shipments forecasts

Post Time:Dec 09,2008Classify:Company NewsView:363

AU and Chi Mei, Taiwan's two largest LCD makers, joined other technology firms to slash their fourth-quarter guidance on Monday, which analysts say could push AU into the red in the run-up to the Christmas season.

A slowing global economy has hurt demand for computers, cellphones and flat-screen TVs, promoting many tech firms, including chip heavyweight Taiwan Semiconductor Manufacturing Co, to cut their forecasts.

On average, AU now expects October-December shipments of its large liquid crystal display panels to fall near 30 percent from the third quarter. That is lower than its previous forecast that PC panel shipments would drop by a low single-digit percent, while TV panel shipments would drop by a mid-teens percent over the same period.

"Based on the current available information and market conditions, previous guidance given on Oct. 23 is not applicable," AU said in a statement, which also showed AU's November's sales declined by two-thirds from a year ago.

Similarly, cross-town rival Chi Mei Optoelectronics said it expected its fourth-quarter shipments to decline by a larger 35-40 percent from the previous three months.

AU also expected fourth-quarter average selling prices to decline about 25 percent from the third quarter, while its fourth-quarter utilisation rate would be about 60 percent, down from the previous estimate of about 70 percent.

Previously AU expected both PC and TV panel prices in the fourth quarter to fall by a low-teens percent from the third.

The lowered forecasts were in line with those made by Citigroup, which said AU could make a net loss of T$15.1 billion ($451 million) in the current quarter, a swing from a third-quarter profit of T$860 million and T$33 billion AU earned a year earlier.

Chi Mei booked a third-quarter net loss of T$3.97 billion.

AU and Chi Mei, which supply to top PC brands Dell and Hewlett-Packard and some TV sellers, released their latest estimates after the Taipei stock market closed on Monday.

AU shares jumped 6.8 percent to their daily limit and Chi Mei shares gained 6 percent, outpacing the main TAIEX's .TWII 4.6 percent rise following a rally on Wall Street. ($1=T$33.5)

Source: ReutersAuthor: shangyi

Hot News