AU Optronics Corp.(AUO) - 500 Beiträge pro Seite

[panik]

Profile:AU Optronics Corp. is a manufacturer of large-size thin film transistor liquid crystal display panels (TFT-LCD panels), which are among the most widely used flat panel display technology. TFT-LCDs are used in notebook computers, desktop monitors and televisions, digital cameras, DVD players, PDAs, mobile phones, portable games and car navigation systems, among other applications. AU Optronics was formed by the merger of Acer Display Technology, Inc. and Unipac Optoelectronics Corporation in 2001. As a result, the company is able to offer TFT-LCD panels in sizes ranging from 1.5 inches to greater than 20 inches, making it one of the few manufacturers globally with capabilities to serve both the small- and large-size TFT-LCD sectors. AU Optronics sells its TFT-LCD panels primarily to original equipment manufacturing service providers, although the Company also sells directly to brand name companies and component manufacturers.


http://www.auo.com






Revenue

[panik]

AU warns of weak Q3, despite bright Q2 profit

By Baker Li

TAIPEI, Aug 7 (Reuters) - Taiwan`s AU Optronics, the world`s No. 3 computer display panel maker, on Wednesday said it swung to a second-quarter profit as the industry crawls back from last year`s slump but warned of a weak third quarter.

"We don`t expect strong back-to-school demand. Overall sentiment and the economy remain weak, so I don`t think third-quarter business will be strong," Max Cheng, chief financial officer, told a briefing for institutional investors.

"As for the fourth quarter, we also don`t have a clear picture in terms of pricing and shipments," Cheng said.

Demand for large-size thin film transistor liquid crystal display (TFT-LCD) screens has picked up since late last year as makers of LCD monitors and notebook computers build inventories, but analysts said a slower-than-expected demand for personal computers will make a strong recovery unlikely in coming months.

AU`s gloomy outlook dashed hopes for a third-quarter jump in sales, normally the beginning of the island`s peak export season.

This also came after a report this week from the United States, Taiwan`s largest customer, showed a slowdown in the U.S. service sector, spawning fears of a double-dip recession and hopes of further easing by the Federal Reserve.

AU said it expected third-quarter unit shipments to fall 20 percent from the previous three months and expected the selling price of LCD panels in the current quarter to drop 10 percent from the second quarter.

The company made a net profit of T$3.9 billion ($114.9 million) in the second quarter to end-June, compared with a net loss of T$2.15 billion in the same period last year and almost double the profit of T$2.03 billion in the previous quarter.

AU said it shipped 2.2 million large-size LCDs in the second quarter and that the average selling price of a standard 15-inch LCD rose to US$270 in the second quarter from $197 in the third quarter of 2001.

July sales fell, however, giving evidence of dwindling demand.

The company`s July sales dropped 17 percent to T$6.14 billion from June`s T$7.43 billion and fell further from the monthly record of T$7.7 billion in May.

July sales were double those from July last year, however, when Taiwan`s economy slipped into its worst ever recession amid the global downturn.

AU was formed by a merger in September last year of two of the island`s top computer screen makers -- Acer Display and Unipac OptoelectronicsNEXT GENERATION PRODUCTS

Despite low visibility for the second half, AU still aimed to increase spending and move into cutting-edge technology to make fifth-generation (5G) LCDs to tap future demand.

"Korean and other local rivals will be mass producing fifth-generation LCDs next year, but that won`t cause a severe oversupply problem," said Hui Hsiung, AU`s executive vice president, citing steady demand from LCD monitors and LCD TVs.

Currently the company owns three 3.5-generation plants and one fourth-generation plant. It is scheduled to start churning out fifth-generation panels in 2003 but did not estimate output.

Lured by falling prices, computer users are switching from boxy cathode ray tube monitors to sleek LCD monitors that save on power and space, analysts said.

Only around one-third of the world`s computers are now equipped with such thin, flat-panel screens.

Korea-Dutch joint venture LG Philips started making fifth-generation LCDs in the second quarter, replacing its long-time rival Samsung as the world`s largest LCD maker.

In Taiwan, five TFT-LCD makers, including AU, are raising a total of around T$170 billion for new 5G plants, which will begin operations in 2003 at the earliest, said Taiwan`s Market Intelligence Center, a state-funded research group.

AU said it set capital expenditure of T$40 billion in the 18-month period covering 2002 and the first half of 2003, almost tripling the T$14 billion last year.

The announcement came after close of trade on Wednesday when AU shares ended up T$0.50 or 1.9 percent at T$26.80, in line with a 3.25 percent rise on the wider TAIEX market.

08/07/02 07:30 ET

[panik]

Sunday August 18, 8:08 pm Eastern Time
Reuters Company News
Taiwan AU gets Sony panel orders - paper

TAIPEI, Aug 19 (Reuters) - Taiwan`s AU Optronics, the world`s third largest computer display panel maker, has won a major order for 17-inch flat panel displays from Japan`s Sony Corp (Tokyo:6758.T - News), the Commercial Times newspaper said on Monday. ADVERTISEMENT




The paper quoted unidentified sources as saying AU had started shipments of tens of thousands of 17-inch thin film transistor liquid crystal display (TFT-LCD) screens to Sony.

The paper said AU declined to comment on the orders, citing confidentiality agreements with clients. Taiwan`s contract manufacturers are usually reluctant to discuss orders from specific customers.

In early August, AU said it swung to a second-quarter profit as the industry crawled back from last year`s slump, but warned of a weak third quarter.

Demand for large-size TFT-LCD screens has picked up since late last year as makers of LCD monitors and notebook computers build inventories. But analysts said a slower-than-expected demand for personal computers will make a strong recovery unlikely in coming months.

[panik]

Taiwan LCD Makers in Pricey War with Korean Rivals
Fri Aug 16, 3:02 AM ET
By Baker Li

TAIPEI (Reuters) - Taiwan`s ambitious computer flat panel screen makers are gaining on world-leading Korean rivals, but hurdles ahead will force the island`s major players to consider merging before they can vie for the top spot.



Taiwan screen makers will be hard pressed to turn increasing market share into dominance on dim market conditions that have blocked funding for Taiwan`s producers, as well as fatter profit margins and better technology at Korean firms, analysts said.

"Raising capital is increasingly difficult. If the recovery is worse than expected and prices continue to fall, they probably will start to think about further consolidation next year," said James Huang, technology analyst at National Securities.

The Market Intelligence Center (MIC) said Taiwan producers could claim 38.2 percent of the global market this year, up from 28.3 percent in 2001.

The state-backed Taiwan think tank said Korea`s share would fall to 39.7 percent, down from 46.9 percent in 2001. Taiwan makers could overtake their Korean counterparts as soon as next year, it added.

But poor market conditions are making it difficult for Taiwan display makers to invest in new, cost-saving technology that larger Korean competitors are already using.

On Thursday, Chunghwa Picture Tubes, the island`s third-largest listed display maker, slashed the pricing on a domestic rights issue of 600 million shares by 25.6 percent.

Chunghwa is the first display maker to scale back funding plans, following a string of capital raising setbacks for other Taiwan tech manufacturers.

On Wednesday, Quanta Computer, Taiwan`s largest notebook computer maker, scrapped a US$220 million convertible bond issue, blaming poor markets.

Taiwan manufacturers plan to raise around T$170 billion (US$5 billion), both at home and abroad, for plants they hope to have up and running by 2003, using the latest technology -- technology that is fast becoming old.

In contrast, Korea`s unlisted LG Philips, a tie-up between LG Electronics and Dutch Philips Electronics NV, started churning out flat screens in the second quarter, displacing rival Samsung Electronics as the world`s largest producer. Samsung has plans to begin production using more advanced technology in 2004.

Taiwan`s display panel makers arrived on the scene in early 2000, aiming to replace Korean firms that supplied Taiwan notebook computer makers.

MONITORS AND TVS

Demand for the latest technology, large-size thin film transistor liquid crystal display (TFT-LCD) panels -- used primarily for thin, space-saving monitors and notebook computers -- has picked up since late last year. But that recovery appears to have stalled.

Taiwan`s AU Optronics, the world`s No. 3 flat panel maker, recently warned of a tough third quarter, adding its voice to a chorus of pessimism from Taiwan tech firms.

Investors have taken note. As of Thursday, AU shares had fallen around 52 percent since mid-April, worse than the 24 percent decline on the main TAIEX index.

Industry executives are pinning their hopes on technological advances that can be used in LCD flat-screen televisions to propel demand.

"The LCD industry is still not close to maturity because LCD television has great growth potential," said Barry Lam, chairman and president of unlisted Quanta Display, which is 30 percent owned by Quanta Computer.

PAYING FOR MARKET SHARE

But market share can come at a high price, as Korean conglomerates found when the 1997-98 Asian financial crisis trashed the driving business principle behind Korean corporate culture that valued market share over profitability.

Analysts say Taiwan LCD makers are more vulnerable to pricing pressure in a market downturn than the Korean makers who produce most of the upstream components they need. Taiwan firms spend about half of the price of a screen on components they buy from Japanese suppliers.

This gives Korean producers better pricing power, which Taiwan makers have to follow to stay competitive.

"Theoretically, Taiwan companies have a bigger risk as (the industry`s) real leadership is in the hands of Korean companies," said Sean Wu, an electronics analyst at the MIC.

Profit margins for Taiwan display makers stood at around 20 percent in the second quarter of this year versus 25-30 percent for Korean firms, National Securities` Huang said. He added that margins for all flat panel display firms could fall five percentage points next year.

Last year, all of Taiwan`s LCD manufacturers swung into the red, but Samsung`s display panel unit managed to make money.

"Taiwan`s LCD companies will return to profitability this year but we are not sure about next year," said Huang.

[panik]

Reuters Market News
Analysts say IPOs of Taiwan LCD makers a tough sell
By Baker Li

TAIPEI, Aug 21 (Reuters) - Taiwan`s Chi Mei Optoelectronics and Quanta Display, two major makers of computer display screens in Taiwan, are set to sound a sour note at their trading debuts next week as pricing pressure rises in a market downturn, analysts said. ADVERTISEMENT




The initial public offering prices of both stocks also suggest they are expensive compared to three listed display panel maker rivals who have been rattled by a gloomy outlook for the tech sector, they said.

"It is not the right time," said Alex Wu, an analyst who tracks the display industry for KGI Securities. "This industry is in a downtrend and concerns that product prices and second-half earnings will fall are not good for their IPOs."

Chi Mei -- 43-percent owned by Chi Mei Corp, one of Taiwan`s largest conglomerates, with interests in food and petrochemicals -- will list on the main Taiwan Stock Exchange on August 26 at a listing price of T$63 (US$1.85) per share.

The company is set to trade under Reuters Instrument Code (Taiwan:3009.TW - News).

Quanta Display, 30 percent owned by Taiwan`s top notebook computer maker Quanta Computer (Taiwan:2382.TW - News), will begin trading on August 28 at T$25 a share under the stock code (Taiwan:3012.TW - News).

KGI`s Wu said Chi Mei shares could slump the daily seven percent maximum for several sessions to around T$40 after listing as its IPO has a high price-to-earnings ratio of 11 times its estimated 2002 earnings per share of T$5.98.

Quanta Display`s IPO also comes in at a skyhigh P/E of 38 times its forecast 2002 EPS of T$0.65, very high for a display maker and double the 19 times for the tech sector.

By comparison, shares of AU Optronics (Taiwan:2409.TW - News), the world`s No. 3 display screen maker and Taiwan`s largest, closed at T$26.70 on Wednesday and are now 6.74 times estimated 2002 EPS.

Chunghwa Picture Tubes (Taiwan:2475.TW - News) ended at T$17.40 and Hannstar Display (Taiwan OTC:6116.TWO - News) finished at T$18.60 on Wednesday. At those levels, they are respectively trading at 7.4 times and 5.72 times projected earnings for this year.

The three listed display firms have all tumbled nearly 50 percent since late April, far worse than a 22 percent fall on the TAIEX (Taiwan:^TWII - News) market during the same period.

The IPO proceeds from Chi Mei and Quanta Display will fund plant expansion and working capital.

PRICING PRESSURE

All of Taiwan`s five major display panel makers lost money last year when the computer industry suffered its worst slump, though demand for large thin film transistor liquid crystal display (TFT-LCD) screens has picked up since late last year.

But that recovery appears to have been stalled by dwindling demand for personal computers, forcing AU to warn of a difficult third quarter as prices are seen falling 10 percent in the current quarter from Q2.

The average sale price of a standard 15-inch LCD used mainly for thin, space-saving monitors and notebook computers rose 30 percent to around US$250 in the second quarter of 2002 from lows in the third quarter of 2001.

"They won`t cut the forecasts immediately after the listing," said research manager Alan Tseng at Capital Securities. "If demand remains in the doldrums and some other tech firms start to announce lower earnings estimates, perhaps they will follow."

Shares of Chi Mei and Quanta Display are expected to fall below T$40 and T$20, respectively, given such a bleak outlook, he said, but gave no 2002 earnings forecasts for the companies.

Clouds have gathered over Taiwan`s tech industry as several reports show growth slowing in the United States, the island`s largest customer, buying about 30 percent of all exports. (US$=T$34)

[panik]

Thursday August 22, 2:35 PM
Tech Stock Focus:Taiwan Chi Mei, Quanta Listings To Flop
ADVERTISEMENT


By Y.H. Sun
Of DOW JONES NEWSWIRES

TAIPEI (Dow Jones)--Taiwan`s two most widely anticipated initial public offerings in the technology sector this year, backed by formidable parents, are scheduled to debut on the main board next week - and both are expected to flop.

Flat panel display makers Chi Mei Optoelectronics Corp. and Quanta Display Inc. will be felled by slack demand for personal computers, monitor makers` high inventories and sour stock market conditions, analysts say.

Chi Mei Opto, which will turn a profit this year and be the first-ever listing for one of Taiwan`s most respected old economy conglomerates, saw its IPO spurned by investors. The same investors, however, couldn`t get enough of Quanta Display, a company that belongs to the world`s top contract PC notebook maker but may be on the verge of another loss-making year.

Despite the sharp contrast in their beginnings, both listings are expected to meet the same fate.

Chi Mei Opto priced its IPO of 20 million shares at NT$63 (US$1=NT$34.019) per share back in the second quarter, split between its underwriters and the public. Of the 10 million shares to the public, just 209,000 shares were sold. Underwriters, led by Taiwan International Securities, had to absorb the unsold shares.

In Taiwan there can be a time lag between the placement of an IPO and its actual stock market listing.

Thursday in the regulated market for emerging stocks, where unlisted securities trade, Chi Mei Opto was quoted at NT$44.90. Analysts warn the stock may lose half its debut value within weeks of its listing Aug. 26 on the Taiwan Stock Exchange.

Because of its high IPO price and concerns over the outlook for the flat panel display industry, Chi Mei Opto may trade down by its daily 7% limit for three straight days after listing, said Christine Wu, an analyst at Taipei`s Yuanta Core Pacific Capital Management. The company`s affiliate Yuanta Core Pacific Securities was one of deal`s co-managers.

Alan Tseng, a manager at Capital Securities in Taipei, said he expects the stock to head toward NT$30 a share in two months.

Weak Outlook, Bad Timing Hurt Chi Mei Opto`s IPO

Chi Mei Opto`s IPO blunder can be blamed on a weak outlook for the technology sector and bad market timing. And neither the industry`s prospects nor the market are likely to improve anytime soon.

In the second half of this year, Taiwan`s information technology hardware industry is expected to grow just 9.6% on year, compared with the 22.4% pace set in the first half, according to Market Intelligence Center in Taiwan. Already panel prices have begun to fall.

The thin-film transistor liquid crystal display, or TFT-LCD, panels produced by both companies can be used in personal computers, television sets, digital personal assistants and mobile phones.

Meanwhile, the benchmark index of the Taiwan Stock Exchange is down 11% so far this year, and the market`s upside is limited as concerns mount over the recovery in the U.S., a main market for Taiwan`s technology goods.

At the same time, the shares of top-tier LCD makers AU Optronics Corp. (AUO) and Chunghwa Picture Tubes Ltd. (Q.CPU) have slid 26% and 45%, respectively.

To a large extent, the worries plaguing Chi Mei Opto also will hurt rival Quanta Display. But because of Quanta`s later placement and cheaper IPO price, investors pounced.

Earlier this month, Quanta Display sold out its 19.5 million shares on offer at NT$25 per share, also evenly split between the public and underwriters. Demand for the public tranche was so great that only nine out of every 100 interested buyers received shares. In the market for emerging stocks, Quanta Display was trading Thursday at NT$31.00, down almost 1%.

But "there won`t be any honeymoon (for Quanta Display). And the stock could head toward NT$20" within two months of its listing Aug. 28, warned Tseng at Capital Securities.

Frank Wu, a senior analyst at President Securities in Taipei, sees an even bleaker future for the listing. He estimates that "buying may emerge when the stock price falls to between NT$10 to NT$15."

IPOs Pricey Based On PE Ratios

Both IPOs, which are floating just around 1% of their outstanding shares, are pricey according to price-earnings ratios. The PE ratios of AU and Chunghwa based on their 2002 earnings targets are 7 and 7.8 times, respectively. Dividing the IPO prices of Chi Mei Opto and Quanta Display by their earnings-per-share targets this year, the PE ratios come to 10.5 and 38 times, respectively.

Ironically, it is Chi Mei Opto that will make money this year. Chi Mei Opto was fourth among the world`s large-area TFT LCD makers in terms of first-quarter revenue, according to U.S.-based research house DisplaySearch.

With a downturn in the sector in the third quarter and uncertainty over prospects for the fourth, Frank Wu forecasts Chi Mei Opto`s 2002 EPS will be around NT$3, half the company`s own forecast of NT$5.98.

That would still be a sharp turnaround from Chi Mei Opto`s loss per share of NT$2.2 last year, when the sector was hurt by weak demand and overcapacity.

Chi Mei Opto is a unit of the group led by unlisted Chi Mei Corp. (Q.CHM), one of the world`s largest makers of acrylonitrile-butadiene, or ABS, a form of plastics used in applications including computer casings. Chi Mei Opto is the first IPO by any unit of the plastics giant.

Quanta Display`s major shareholders include Quanta Computer Inc. (Q.QTC), the world`s top contract notebook maker last year, and Japanese electronics giant Sharp Corp. (J.SRP or 6753).

Frank Wu expects Quanta Display to post a loss per share of between NT$0.5 and NT$1 this year, compared with the company`s own forecast of earnings per share of NT$0.65. Last year Quanta Display lost NT$0.85 per share.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502-2557; [e-mail]

[panik]

Thursday August 22, 8:38 AM
TAIWAN PRESS: TSMC, AU Optronics To Invest In Hsinchu
ADVERTISEMENT


TAIPEI (Dow Jones)--Contract chip maker Taiwan Semiconductor Manufacturing Co. (TSM) and display panel maker AU Optronics Corp. (Q.AOT) are planning to set up new production bases in Hsinchu, the Economic Daily reports, quoting Hsinchu County chief Cheng Yung-chin.
The report said TSMC is expected to build two 12-inch wafer plants, while AU Optronics is expected to build an advanced thin-film transistor liquid crystal display factory in Hsinchu`s industrial park.

The report said the total investment of the two companies will reach NT$100 billion (US$1=NT$33.995).

Newspaper Web site: http://www.udnnews.com

-By Frances Huang, Dow Jones Newswires; 8862-2502-2557; [e-mail]

[panik]

Asia display shares soften as demand outlook dims
Wednesday August 28, 5:12 am ET

By Edmund Klamann and Michael Kramer

(Updates share prices to close)

TOKYO/TAIPEI, Aug 28 (Reuters) - Shares in Asia`s liquid crystal display (LCD) makers weakened on Wednesday as the market received some fresh reminders of how weak the market for flat PC displays is proving to be.

ADVERTISEMENT


U.S.-based market researcher DisplaySearch issued a forecast on Tuesday that shipments of large-area LCD panels, measuring 10 inches or more and used mainly in PCs, would fall 7.8 percent in the July-September quarter from last quarter`s record high.

It also said average selling prices were set to fall two percent this quarter, blaming a rise in inventories.

Adding to the bearish outlook was a report in Japan`s Nihon Keizai Shimbun business daily on Wednesday that the price for a benchmark 15-inch notebook PC display fell in August for a second consecutive month to $235-$245, down $20 from the June peak.

Shares of Sharp Corp (Tokyo:6753.T - News), Japan`s largest LCD maker, ended down 3.08 percent at 1,291 yen, underperforming a 2.2 percent drop in the Tokyo Stock Exchange`s electrical machinery index (^IELEC.T - News).

Taiwan`s largest LCD screen maker, AU Optronics (Taiwan:2409.TW - News), ended down 1.79 percent at T$27.50, while Chi Mei Optoelectronics (Taiwan:3009.TW - News) fell its seven-percent daily trading limit to T$51.50.

Weaker prices, however, will likely attract additional buyers in the highly price-sensitive PC monitor market going into the fourth quarter, said Richard Chu, analyst for ING in Tokyo.

"I think there is very good price elasticity on the monitor side and that will help strengthen the market," he said. "The real concern is how much demand is going to pick up, and the market is obviously pricing in a very weak pick-up in October."

LCD prices climbed in the first half of this year, recovering from a slump the year before when falling PC demand and rising production capacity, especially in Taiwan, sent prices tumbling.

SUPPLY-DEMAND

Fuelling this year`s rebound was a surge in LCD demand for desktop PC monitors, although that boom cooled as prices rose.

Sharp senior managing director Hiroshi Saji warned an analysts` meeting late last month that prices for large-area LCD panels appeared to have peaked in June, much sooner than the company had expected.

But Sharp retains a bullish long-term view on LCD demand, especially for flat-panel TVs, which are increasingly popular for cramped Japanese living rooms or as a second TV for the kitchen or bedroom.

Analysts say, however, that aggressive capital investment by Taiwanese and Korean producers may create a long-term display glut that would take years for demand to catch up to.

"In the second half of 2003, I think you`re going to see oversupply," said Deutsche Securities analyst Frank Lee, adding that LCD TVs were still too expensive to sop up the excess.

"It all comes down to the price, and it will be another two years before they bring it down to a meaningful gap," he said.

Korean electronics conglomerate Samsung Electronics Co Ltd (KSE:05930.KS - News), the world`s largest maker of large-area LCDs, announced plans on Tuesday to spend 413.5 billion won ($347.50 million) in the first five months of 2003 to beef up production lines for LCDs used in PC monitors and flat-panel TVs.

Samsung`s shares ended down 1.5 percent at 328,000 won on Wednesday.

Among Taiwan`s smaller LCD manufacturers, Chunghwa Picture Tube (Taiwan:2475.TW - News) slid 2.26 percent to T$17.30, Hannstar Display (Taiwan OTC:6116.TWO - News) dropped 5.56 percent to T$18.70, while Quanta Display (Taiwan:3012.TW - News) ended limit-down at T$23.30 on its first day of trade.

Taiwan electronics industry daily Digitimes said LCD screen firms were still negotiating September prices with clients, but quoted a senior official at PC monitor maker Benq Corp (Taiwan:2352.TW - News) as saying prices were likely to fall as supply outpaced demand.

Japan`s Nitto Denko (Tokyo:6988.T - News), which makes films used in LCDs, was down 4.93 percent at 3,280 yen. (Additional reporting by Nathan Layne in Tokyo, Kim Miyoung in Seoul) ($1=1189.8 Won)

[panik]

Taiwan TFT LCD producers post 1H financial results

Gloria Chen, Taipei; Shih-wei Kao, DigiTimes.com [Wednesday 28 August 2002]


The five Taiwanese TFT LCD producers recently posted their first-half financial results. Chi Mei Optoelectronics (CMO) led the companies in profit performance, followed by AU Optronics (AUO) and HannStar Display. Chunghwa Picture Tubes (CPT) registered a rather disappointing profit result but Quanta Display Inc. (QDI), the latest entrant with a more conservative financial forecast, achieved a profit result in line with its prediction. QDI stock was was listed on the Taiwan Stock Exchange (TSE) starting today (August 28).

AUO’s financial results in 1H of 2002 (NT$m)


1H
Full year (forecast)
Percent of forecast (%)

Sales
42,420
92,970
45.6

Pre-tax income
5,930
14,305
41.4

Net income
5,930
14,305
41.4

EPS (NT$)
1.64
3.99
41.1

Gross margin (%)
21.8
21.7
--


Source: AUO, compiled by DigiTimes, August 2002.

CMO’s financial results in 1H of 2002 (NT$m)


1H
Full year (forecast)
Percent of forecast (%)

Sales
21,183
54,198
39.1

Pre-tax income
4,250
11,124
38.2

Net income
4,025
10,627
37.9

EPS (NT$)
2.47
5.98
41.3

Gross margin (%)
26.0
27.3
--


Source: CMO, compiled by DigiTimes, August 2002.

CPT’s financial results in 1H of 2002 (NT$m)


1H
Full year (forecast)
Forecast achieved (%)

Sales
24,560
52,640
46.7

Pre-tax income
3,612
11,531
31.3

Net income
3,373
11,116
30.3

EPS (NT$)
0.75
2.34
32.1

Gross margin (%)
19.1
24.9
--


Source: CPT, compiled by DigiTimes, August 2002.

HannStar Display’s financial results in 1H of 2002 (NT$m)


1H
Full year (forecast)
Forecast achieved (%)

Sales
18,071
40,958
44.1

Pre-tax income
2,606
6,674
39.0

Net income
3,356
8,174
41.0

EPS (NT$)
1.44
3.27
44.0

Gross margin (%)
21.6
26.3
--


Source: HannStar Display, compiled by DigiTimes, August 2002.

QDI’s preliminary financial results in 1H of 2002 (NT$m)


1H
Full year (forecast)
Forecast achieved (%)

Sales
7,370
18,483
39.9

Pre-tax income
--
1,731
--

Net income
664
1,344
49.4

EPS (NT$)
0.33
0.65
50.8

Gross margin (%)
--
15.75
--


Source: QDI, compiled by DigiTimes, August 2002.

Taiwan TFT LCD companies’ stock closing prices on August 28 (NT$)


AUO
CMO
CPT
HannStar
QDI

Price
27.50
51.50
17.30
18.70
23.30


Source: TSE and Taiwan OTC market, compiled by DigiTimes, August 2002.

[panik]

Reuters Company News
Taiwan AU expects demand pickup in Q4 from weak Q3
Monday September 2, 5:57 am ET


TAIPEI, Sept 2 (Reuters) - Taiwan`s AU Optronics Corp (Taiwan:2409.TW - News), the world`s No. 3 computer display screen maker, said on Monday it expected demand for its products to recover in the fourth quarter, improving from the current difficult market.

"We think August was the bottom, and after that demand should start to pick up slowly," President H.B. Chen, told reporters at the celebration of AU`s first anniversary.

AU was formed by a merger in September last year of two of the island`s top computer screen makers -- Acer Display and Unipac Optoelectronics.

"According to information we collected (from customers), demand is picking up and inventories are falling," Chen said. "The fourth quarter is still the traditional peak season although we are not sure how strong the recovery will be."

AU shares closed down 4.53 percent at T$25.30 on Monday, outstripping a 2.53 percent fall on the main TAIEX (Taiwan:^TWII - News).

The upbeat comment came after AU warned last month of a bleak third quarter, saying its Q3 unit shipments will fall 20 percent on the previous quarter and the selling price of display panels in the current quarter to drop 10 percent on the second quarter.

Taiwan manufacturing usually heats up in the second half of the year ahead of the holiday season in Europe and the United States, the island`s largest export destination. Most of Taiwan`s tech firms are contract suppliers to U.S. brand names.

Demand for large-size thin film transistor liquid crystal display (TFT-LCD) screens has picked up since late last year as makers of LCD monitors and notebook computers built inventories, but analysts said slowing demand for personal computers will make a strong recovery unlikely in coming months.

Despite low visibility of the tech sector recovery, AU still aimed to move into cutting-edge technology to make fifth-generation (5G) LCDs to tap future demand.

Later generations of TFT-LCD production use larger panes of glass in the manufacturing process, allowing companies to make bigger screens as well as cut production costs for smaller screens.

AU, which owns three 3.5-generation plants and one fourth-generation plant, is expected to churn out 18.6 million TFT-LCD panels in 2003 after its fifth-generation plant starts operating in the third quarter next year, Chen said.

No estimate for 2002 output was available. AU will also set up more plants using advanced sixth- and seventh-generation technology in the future but it was too early to talk about investment figures and details, Chen said.

Korea-Dutch joint venture LG Philips started making fifth-generation LCDs in the second quarter, replacing long-time rival Samsung as the world`s largest producer. (US$=T$34.2)

[panik]

Wednesday September 4, 1:30 AM
Hot Stocks: PTMK AUO PBG CIK TOT
PATHMARK STORES INC (PTMK)
C.L. King downgraded the company`s stock to neutral from
strong buy.
Price: $11.25
Net Change: -$2.23
% Change: 16.54% Loss
Volume: 383,696 Shares
... ... ...
AU OPTRONICS CORP (AUO)
Shares down after a Taiwan analyst said the company`s
stock isn`t a good long-term investment due to a weak
sector outlook for next year.
Price: $7.01
Net Change: -$0.65
% Change: 8.49% Loss
Volume: 84,000 Shares

[panik]

Tuesday September 3, 11:10 AM
Taiwan Hot Stock: AU Optronics Dn On Weak 2003 Outlook
ADVERTISEMENT


TAIPEI (Dow Jones)--Shares of Taiwan`s largest flat panel maker AU Optronics Corp. (AUO) are down in heavy volume Tuesday on the sector`s weak outlook for next year.
At 0306 GMT (11:06 p.m. EDT Monday), the stock was down NT$0.20, or 0.8%, at NT$25.10 (US$1=NT$34,345) on volume of nearly 50 million shares. It hit a low of NT$24.80 earlier in the session.

The main board was down 0.98%.

Liao Lung-hai, an analyst at MasterLink Securities Consulting in Taipei, said the stock isn`t viewed as a good long-term investment because of the weak outlook for next year.

Prices of thin-film transistor liquid crystal display panels are expected to drop next year when the supply increases as several companies, including AU Optronics, bring their new plants on line.

AU Optronics is the world`s number three maker, in terms of shipments, of large TFT-LCD panels.

However, over the short term, the stock could rebound due to the expected seasonal uptick for the TFT-LCD industry.

On Monday, AU Optronics President HB Chen said sales volume should improve in coming months, due to the onset of the traditional peak season for the electronics sector and inventory digestion by distributors in the past few months.

Back-to-school sales may be disappointing for the tech sector, but shipments may still rise ahead of the Christmas shopping season, said Liao.

The analyst said that as prices of TFT-LCD panels have stabilized, AU Optronics` 2002 earnings per share "has a chance to be close to" the company`s forecast of NT$3.99.

Based on the company`s 2002 EPS projection, the stock is relatively inexpensive and may breach NT$29.2, a three-week intraday high reached Aug. 27, in coming weeks, analysts said.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502-2557; [e-mail]

[panik]

Wednesday September 4, 12:45 PM
INTERVIEW: Taiwan`s Cando Sees TFT-LCD Sector Picking Up
ADVERTISEMENT


By Y.H. Sun
Of DOW JONES NEWSWIRES

TAIPEI (Dow Jones)--If orders at Cando Corp. - a leading Taiwan manufacturer of a key component for thin-film transistor liquid crystal displays - are any indication, the display panel sector is finally picking up, according to a Cando executive.

Although he cautioned that his component sector doesn`t always mirror conditions in the TFT-LCD sector, the company is optimistic about its industry`s outlook and is eyeing an over-the-counter market listing to help fund production expansion.

"Business for our clients, such as AU Optronics and other TFT-LCD makers, has improved slightly in August from June and July," said Vice President Daoyang James Huang.

Cando`s sales started to improve in July after the companies` clients digested inventories in June, he said.

In August the unlisted company saw its revenue exceeded NT$200 million (US$1=NT$34.295) from July`s NT$171 million.

It is forecasting a loss of NT$86.2 million for 2002 and a net profit of NT$241.6 million for 2003.

Cando is one of Taiwan`s largest makers of color filters, an important component for TFT-LCD panels, which are used in a variety of electronics products, including computers, television sets, mobile phones, and personal digital assistants.

Huang`s comments echo those by TFT-LCD maker AU Optronics Corp.`s (AUO) President HB Chen, who said Monday that his company`s sales volume should improve in coming months due in part to a seasonal upturn for the tech sector ahead of Christmas.

Business Slower For Clients In June, July

After a recovery started earlier this year, "business for our clients was slower" in June and July as panel buyers digested excess inventories they had accumulated, said Huang. But business improved for clients in August and Cando has seen an increase in orders for September.

Cando`s clients include South Korean TFT-LCD maker Hydis Co., a unit of Hynix Semiconductor Inc. (Q.HYY), and AU Optronics, Taiwan`s largest TFT-LCD maker.

Cando attracted attention several months ago when local newspapers reported the company tried to organize a consortium to acquire Hydis Co.

The acquisition never materialized because the TFT-LCD sector recovered in the first half of the year from last year`s downturn, and Hydis no longer had the pressing need for funds to help ease its financial difficulties, according to Huang.

However, Huang noted that the business conditions of Taiwan`s color filter industry don`t always go in tandem with those in the TFT-LCD sector, as Taiwanese color filter makers can only provide 20% of the color filters needed by Taiwanese panel makers.

The rest is imported from Japan, according to Huang.

"The economy`s downturn has less impact on us," in part because of the short supply of color filters in Taiwan, he said.

He noted that in July, when revenues of Taiwanese TFT-LCD makers fell from June, due in part to inventory digestion by monitor makers and sluggish demand for end products, Cando`s revenue had risen 53% from June to NT$171 million.

Due to this short supply of color filters in Taiwan and an expected rise in future demand, Cando is planning new production lines.

The global annual production value of color filters is expected to rise to more than US$3.3 billion in 2005 from 2001`s US$1.5 billion, as many consumers replace their bulky cathode ray tube, or CRT, monitors, with sleek TFT-LCD monitors, according to a report by Cando.

Cando has one color filter production line. Its second production line, which has a capacity 50% larger than its first, is expected to start volume production in the third quarter next year.

The company is also planning to build next-generation color filter plants in the coming years, Huang said, without offering details.

To help raise funds for new production facilities, the company hopes to list on Taiwan`s over-the-counter stock market next year, and is presently looking for new investors.

He didn`t name any potential investors.

Cando`s major shareholders include Taiwanese consumer electronics giant the Teco Group, Sanyo Pharmaceutical Group, and Sumitomo Chemical Co. (J.SUC) of Japan.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502 2557; [e-mail]

[panik]

AU Optronics to build 5G color filter production line


Andrew Liu, Taipei; Chinmei Sung, DigiTimes.com [Tuesday 3 September 2002]


AU Optronics (AUO) will invest NT$10 billion to build a fifth-generation (5G) color filter (CF) production line and expects volume production in the fourth quarter of next year, stated company president HB Chen. Monthly processing capacity of 1,100×1,250mm glass substrates is estimated at 60,000, he said.

Chairman Kun-yao Lee said the company based its decision on the potential to reduce transportation of its large-size glass substrates and the desire to develop the technology to supply its own CFs. The company’s main CF suppliers include Taiwan’s Sintek Photronic.

Chen indicated that AUO is committed to building more next-generation TFT LCD plants. As this 5G CF production line will only provide a fraction of the CFs needed for all the company’s large-sized substrates, the company will still depend on outside sources for CF supply.

[panik]

AU Optronics demos 3.8-inch LTPS TFT LCD and 4-inch AM OLED


Andrew Liu, Taipei; Chinmei Sung, DigiTimes.com [Tuesday 3 September 2002]


AU Optronics (AUO) yesterday announced two new display prototypes: a 3.8-inch low-temperature poly-silicon (LTPS) TFT LCD and a 4-inch LTPS technology-based active matrix (AM) organic light-emitting diode (OLED).

The company said its 3.8-inch LTPS TFT LCD, which is half reflective and half transmissive, consuming less power than a transmissive display, is suitable for use in handsets and PDAs. According to the company’s president HB Chen, it will begin small test production of the 3.8-inch LTPS TFT LCDs next quarter and kick off volume production in the third quarter of next year.

In terms of developing OLED technology, the launch of the 4-inch LTPS-based AM OLED together with its earlier launch of a 4-inch amorphous silicon (a-Si)-based AM OLED, has made AUO the only company in Taiwan offering both poly-Si and a-Si OLED technologies, Chen said.

According to the company’s roadmap, it will focus on the development of OLED products for handsets at the initial stage and aim at making products for PDAs, digital cameras and SmartPhones in the second phase, the company’s vice president Po-yen Lu said.

[panik]

Monday September 9, 12:00 AM
TFT-LCD panel makers take 38% of global market
By The China Post staff
ADVERTISEMENT


The TFT-LCD panel industry is the fastest-growing industry in Taiwan, and the island has replaced South Korea and Japan to become the world`s largest TFT-LCD panel supplier during the first half of this year, gaining a world market share of 38 percent.

Since beginning in Taiwan five years ago, the TFT-LCD industry has been regarded as one of the island`s most promising new industries. Its productivity quickly expanded, with new factories coming on line despite the gloomy economy over the past few years.


According to the Display Research, which claims to be the most authoritative research institution for the TFT-LCD industry, Taiwan has become the world`s largest large TFT-LCD panel supplier, with its market share expanding to 38 percent during the first half of this year, surpassing South Korea`s 36 percent. "Taiwan was originally scheduled to surpass South Korea by the end of this year, but has reached this goal several months early," said the international research institution.


The five largest TFT-LCD panel makers in Taiwan have all been setting up factories to make 5th-generation TFT-LCD panels. Taiwan`s strength in this field will be further enhanced when their new production lines commence operations. The cost for a fifth-generation TFT-LCD panel factory is double that of a 4th-generation one, but productivity is 1.5-times higher.


AU Optronics issued ADRs on the New York Stock Exchange (NYSE) in May this year, becoming the first Taiwan TFT-LCD panel maker to be listed on the NYSE.


With its expansion of productivity, the TFT-LCD industry is expected to replace the IC industry in annual output. The industry`s output for this year is estimated by the Ministry of Economic Affairs (MOEA) to reach NT$233 billion, compared to the NT$628.2 billion of the IC industry. The IC indsutry has developed in Taiwan over two decades, while the TFT-LCD industry has developed over only five years.


The MOEA anticipates that annual output for large TFT-LCD panels will reach 24.58 million pieces this year, up 109 percent from last year. The international prices of large TFT-LCD panels have stayed on the upward track since last winter. The price for one 15-inch panel climbed to US$265 per piece during the second quarter this year. However, some industrial insiders have observed an oversupply during the third quarter. They see only a slim chance that prices will increase while market demand becomes weaker.

[Chipdesign]

Tuesday September 17, 8:26 AM
TAIWAN PRESS:AU Optronics May Lead TFF-LCD Price Cuts Oct
TAIPEI (Dow Jones)--Prices for thin-film-transistor liquid crystal displays may fall in October to lows not seen since last year and the price cuts are expected to be led by AU Optronics Corp. (AUO), reports the Economic Daily News.
AU Optronics, Taiwan`s largest TFT-LCD maker, could cut prices by US$10-US$15 a unit.

The price of a 15-inch TFT-LCD panel is expected to fall below US$200, while the 17-inch panel may test US$300.

ADVERTISEMENT


The weakness in prices is due to weaker-than-expected demand that has sent panel prices down for the past three months already. Prices for the 15-inch displays have fallen about 20% over the past three months.

Newspaper Web site: http://www.udnnews.com

-By J.R. Wu, Dow Jones Newswires; 8862-2502-2557; [e-mail]

[panik]

Taiwan`s AU Optronics: 3rd Quarter Sales To Be 20% Lower Than 2nd Quarter
Thursday September 26, 1:37 am ET


TAIPEI -(Dow Jones)- Third quarter sales at AU Optronics Corp. are expected to fall 20% from the second quarter, HB Chen, president of Taiwan`s largest thin film transistor liquid crystal display maker, said Thursday.
Chen didn`t elaborate, but analysts have said falling demand in the second half of the year may hurt Taiwan`s technology titans more than expected.

The forecast is also in line with concerns expressed by AU executives in recent months about low visibility for the TFT-LCD sector.

[panik]

Monday October 7, 9:50 AM
Taiwan AU`s Sept sales rise 89.8 pct from year ago
TAIPEI, Oct 7 (Reuters) - Taiwan`s AU Optronics , the world`s third largest computer display screen maker, said on Monday its September sales rose 89.8 percent to T$5.5 billion

(US$157 million) from the same month a year ago.

ADVERTISEMENT


Accumulated sales for the first nine months of 2002 surged 163.7 percent from the year-earlier period to T$59.54 billion, the company said in a statement.

September`s sales were up only 2.2 percent from August`s total, it said.

Demand for large-sized thin-film-transistor liquid-crystal display (TFT-LCD) screens has picked up since late last year as makers of LCD monitors and notebook computers build inventories, but analysts said slower demand for personal computers will make a strong recovery unlikely in coming months.

(US$=T$35)

[panik]

Forbes Magazine
Reunification, Chinese Style
Wednesday October 16, 5:08 pm ET

By Robyn Meredith


Taiwan has invaded Mainland China--with jobs and capital. Politics will adapt to the new reality.
On Friday nights Chuan Bo Restaurant bustles with Taiwanese businessmen and engineers unwinding as they slurp squid porridge under photographs of historic Taiwan scenes. The restaurant draws a crowd every night because of the scores of Taiwanese factories nearby, but it is incongruous for one big reason: It is in downtown Kunshan, China. Mainland China.

ADVERTISEMENT


Drive two hours along the newly laid highway stretching northwest from Shanghai and it grows harder and harder to tell whether there is one China or two. So many Taiwanese companies have opened factories in the area that Kunshan is nicknamed the "Little Taipei" of Shanghai.

Taiwanese business owners began setting up factories in Mainland China in the 1980s. The trickle became a flood in the past few years, much of it pouring into the Shanghai region, where 400,000 Taiwanese now live, and more than half of Taiwan`s investment landed last year.

How much is there?

Taiwan`s official government figures, which understate the scale of Taiwan`s investment, show $17.1 billion invested in Mainland China from 1991 to 2000. However, Investing China magazine says the cumulative figure is far higher: $139 billion since 1979. Since then, 11,100 Taiwanese companies have plunked $31 billion into the province that includes Shanghai. Another 14,136 companies have invested $30 billion in the southern province of Guangdong, according to the magazine. Even Tibet boasts $100 million invested by five Taiwanese firms.

"Taiwan is getting emptier and emptier," says Theodore M. H. Huang, chairman of the Chinese National Association of Industry & Commerce and chairman of TECO Group , a $3 billion Taipei conglomerate. "The business sector wants to go to China--we have to go to China." Huang says his conservative company has been one of the last big Taiwanese businesses to set up shop in Mainland China.

Since the end of the Cold War, politics has been driven by economics instead of the other way around. It is no different in Asia now that China has opened its doors. Despite the fact that their politics clash, Taiwan`s economy is being knit together with China`s, thanks to the latter`s cheap labor and rapidly growing market.

Less than a half-hour`s drive past Little Taipei is a TECO factory where 130 workers build 500 small industrial motors a day for 30% less than it would cost in Taiwan. An hour`s drive beyond, TECO has another factory under construction. This one will build heavy-duty industrial motors using a milling machine and a boring machine shipped from an old Westinghouse factory TECO bought in Austin, Tex. Behind this soon-to-be-buzzing factory, there`s a plowed field. By the end of the year TECO will begin building an air-conditioner plant there.

Where is TECO finding so many customers so fast so far from home? So many other Taiwanese factories are setting up shop nearby that they need TECO`s motors to run their own machines.

High tech or low tech, it is the same story. Just this June, Taiwan`s AU Optronics opened a $150 million factory in Suzhou, China. The company makes any-size-you-want flat-panel displays, the only pure play in the industry. It builds tiny screens for mobile phones and digital cameras, and big panels for Apple, Toshiba, Acer, IBM and other name brands, many of which assemble their end products in China these days.

Thanks to the Taiwanese company, anyone looking for evidence of China`s newfound ability to make state-of-the-art tech goods would find it. Much of AU Optronics` China factory looks like a California corporate campus. Pull on rubber gloves, a clean suit, special boots, a mask and walk through two air showers and you could be in an "Intel Inside" commercial but for the absence of dancers. Robots do the most precise work, then hand off to Chinese workers, some of whom have been trained for a month for the most delicate stations on the assembly line.

K.Y. Lee, chief executive of AU Optronics (NYSE:AUO - News) , says assembly jobs were the first ones to move from Taiwan to China, but that more and more design, marketing and management jobs are going to Mainland China. In about five years "there will be no difference" between work forces in the two places, he says.

Politics are shifting as fast as technology and jobs migrate. At a private dinner with Taiwan`s president in mid-September, Mr. Huang, on behalf of Taiwan`s leading businesses, presented a wish list of policy changes they say would make Taiwan more competitive. One of them: establishment of direct flights and shipping links to the mainland.

Officially, there`s a great divide. Taiwanese President Chen Shui-bian provoked an uproar this summer by saying there was "one country on each side" of the Taiwan Strait. China`s response: angry rhetoric. But for all its official distaste for the rebel regime in Taipei, Mainland China wants Taiwan`s capital and technological expertise. That`s the main reason you haven`t read recently about missile tests aimed across the strait.

[panik]

Wednesday October 23, 2:34 PM
Taiwan`s AU sees Q4 shipments up 10-20 pct from Q3
TAIPEI, Oct 23 (Reuters) - Taiwan`s AU Optronics , the world`s third largest computer display panel maker, said on Wednesday it expected fourth-quarter shipments to rise by 10-20 percent from the previous three months.

Company vice president Hui Hsiung gave the estimate at an institutional investor briefing, but provided no explanations.

ADVERTISEMENT


AU`s shipments in the third quarter totalled 1.76 million units of large-sized panels.

Earlier on Wednesday, AU Optronics said it turned a profit in the third quarter of 2002 from a loss last year, but cut its 2002 earnings forecasts by 58 percent due to poor demand and lower prices.

The announcement came after close of trade on Wednesday when AU shares surged the daily seven percent limit to T$21.10, outperforming a 4.64 percent rise on the main TAIEX market.

(US$=T$34.9)

[panik]

Korea Samsung Elec Denies Interest In AU Optronics Stake
Monday November 4, 9:38 pm ET


SEOUL -(Dow Jones)- South Korea`s Samsung Electronics Co. Tuesday denied a media report saying the company is interested in buying a 10% stake in Taiwan`s AU Optronics Corp. .
"The report isn`t true. We aren`t aware of any such talks," said Samsung Electronics` spokesman James Chung.

Tuesday, the Commercial Times reported that Goldman Sachs is trying to broker a deal between the two companies. The report said Samsung would buy the stake in a share swap or cash.

Sales at Samsung Electronics` semiconductor division, which includes liquid crystal displays - fell 4.4% to KRW3.1 trillion for the three months ended Sept. 30 due to falling prices of thin film transistor liquid crystal displays.

Samsung Electronics and AU Optronics are among the world`s largest makers of TFT-LCDs.

-By Yun-Hee Kim; Dow Jones Newswires; 822-732-2165; [e-mail]

[panik]

Taiwan`s AU Optronics to build 287 mln dollar research centre
ADVERTISEMENT


The world`s third biggest flat panel maker, Taiwan`s AU Optronics Corp., has said it will invest 10 billion dollars (287.4 million US) in technology development during the next three years.

The investments will include building a technology research and development (R and D) centre in Taiwan.

"Our company has invested over 6.6 billion on research and development over the past five years and has budgeted to invest an additional 10 billion in the next three years," chairman K.Y. Lee said in a statement issued Wednesday.

"To establish the best LCD (liquid crystal display) technology platform and fully integrate our R and D resources, plans are underway to invest 1.2 billion in constructing a 684,000 square feet research centre next to our headquarters in the Hsinchu Science-Based Industrial Park," he said.

The research centre -- which will employ over 1,000 engineers over a three-year period -- is targeted for completion by the second quarter of 2004.

The company said the AU Technology Center will significantly increase its holdings of intellectual property rights ownership.

Research activities at AU Technology Center will initially be divided in seven general segments, including advance technology development in plasma display panel, organic light-emitting diodes and low temperature poly-silicons.

In addition to new product development and module processing, the centre will also devote substantial efforts to improving current LCD production and product technologies.

[panik]

Taiwan AU`s Oct sales rise 35.17 pct from year ago
TAIPEI, Nov 7 (Reuters) - Taiwan`s AU Optronics , the world`s third largest computer display screen maker, said on Thursday its October sales rose 35.17 percent to T$5.88 billion

(US$170 million) from the same month a year ago.

ADVERTISEMENT


Accumulated sales for the first 10 months of 2002 jumped 142.74 percent from the year-earlier period to T$65.42 billion, the company said in a statement to the Taiwan Stock Exchange.

October`s sales were also up slightly from September`s T$5.5 billion.

Display screen makers benefit from consumers rejecting the traditional boxy cathode ray tube (CRT) monitors for new LCD monitors and laptops.

Demand has picked up since late last year but that recovery appears to have stalled, while a supply glut led to falling product prices.

Last month, AU cut its 2002 net profit estimate by 58 percent to T$6 billion due to lower product prices.

By 0239 GMT, AU shares were up 0.8 percent at T$25.20, while the main TAIEX market gained 0.42 percent.

(US$=T$34.6)

[panik]

Monday November 25, 3:22 PM
Taiwan`s flat screen output growth seen slowing
TAIPEI, Nov 25 (Reuters) - Taiwan`s output of flat-screen displays is expected to see little growth in 2003 after a stellar 2002 as a weak recovery in the global computer industry is hurting prices, an analyst said on Monday.

The production value of the island`s display screens will rise 11.1 percent to US$8.86 billion in 2003, far slower than an estimated 119.4 percent jump in 2002, said M.S. Chen of the economics ministry`s Industrial Technology Research Institute.

ADVERTISEMENT


"Pressured by falling screen prices, the growth won`t be very strong next year," Chen told a discussion on the display industry.

Flat-screen makers are benefiting from consumers opting for liquid crystal displays and laptops over traditional boxy cathode ray tube monitors.

Demand has picked up since late last year but that recovery appears to have stalled in the second half of 2002, while a supply glut has pushed down prices.

AU Optronics and Chi Mei , Taiwan`s two largest display makers, each cut their 2002 earnings forecasts by more than half last month due to lower prices.

Taiwan will remain the world`s second biggest maker of large screens in terms of output in 2003, with a 36.6 percent global market share, trailing South Korea`s 41 percent, Chen said.

[panik]

Reuters
RPT-UPDATE - Taiwan AU swings to 2002 profit, pressure remains
Monday January 27, 1:09 am ET
By Baker Li


(Fixes typos in first paragraph)
TAIPEI, Jan 27 (Reuters) - Taiwan`s AU Optronics Corp (Taiwan:2409.TW - News), the world`s number-three computer screen maker, said on Monday it had returned to profit in 2002, meeting market expectations as consumers flocked to its slim, energy-saving displays.

ADVERTISEMENT


However, Taiwan display makers and global leaders in South Korea are expected to churn out more displays using cutting-edge technology this year, which could lead to a supply glut in the second half and push the company back into the red.

AU made a net profit of T$6.02 billion (US$174 million) in 2002, a swing from a loss of T$6.7 billion in 2001, when the industry suffered its worst ever slump, and compared with the T$6.03 billion profit projected by research firm Multex.

AU will make a net loss of T$3 billion this year, according to the consensus of forecasts collected by Multex before the latest results. The company supplies screens to U.S. giants such as Dell Computer Corp (NasdaqNMELL - News) and Hewlett-Packard Co (NYSE:HPQ - News).

AU trails only Korea`s Samsung Electronics Co (KSE:05930.KS - News) and unlisted LG Philips Display in terms of market share.

Despite the positive 2002 results, the company has already felt the pressure from falling prices in the fourth quarter, a result of the slower recovery in the global computer industry.

"In the fourth quarter of last year, the more screens it produced, the more money it lost because prices fell to below production cost," said Alex Wu, an analyst who tracks the display industry for KGI Securities.

AU made a net loss of T$780 million in the October-December period, a shift from a net profit of T$870 million in the third quarter of 2002 but narrowing from a net loss of T$1.23 billion a year earlier.

WEAK SHARE PRICE

Display prices have stabilised in the first quarter but Wu was not optimistic about the second quarter because the tech industry would be entering its annual slack manufacturing period. Adding to concerns is the additional capacity coming on line in the second half, he said.

Wu said AU shares could fall as low as T$18 in the second quarter. AU shares finished unchanged at T$22.00 while the wider TAIEX (Taiwan:^TWII - News) index lost 1.7 percent.

Pressured by falling prices, the stock has lost around 40 percent since mid-July, far more than the six percent fall on the big board during the same period.

After a dismal 2001, the average selling price of a standard 15-inch (38 cm) liquid-crystal screens rebounded to US$250 in the second quarter of 2002 but has since fallen to below production cost of around $180 in the fourth quarter.

The recent decline in screen prices has spurred some demand from downstream manufacturers of notebook computers and flat monitors, and prices have rebounded to near $175 apeice from lows in the fourth quarter of last year.

But the recent rise in prices may not last.

"Due to lower seasonal demand within Q2 and significant capacity coming on stream in Taiwan and Korea in the second half, we believe panel prices are unlikely to continue rising after the first quarter," UBS Warburg said in a recent note.

(US$=T$34.6)

[51boyauswedding]

AUO to begin LTPS panel production by year-end
Andy Liu, Taipei; Shih-wei Kao, DigiTimes.com [Thursday 20 March 2003]


AU Optronics (AUO) expects to begin LTPS (low-temperature poly-silicon) TFT LCD production at a monthly processing capacity of 4,000 substrates by year-end, disclosed company president HB Chen at a March 19 seminar sponsored by Merrill Lynch.

Aiming at the small to medium-size panel market, AUO is converting part of its L3 3.5-generation TFT LCD line for LTPS panel production

AUO TFT LCDs: Global market share and ranking by application


Market share (%)
Ranking

Digital still cameras
32
1

Digital video cameras
21
2

Mobile phones
12
3

14.1-inch LCD monitors
13
4

15-inch LCD monitors
15
3

17-inch LCD monitors
24
2


Source: company, compiled by DigiTimes, March 2003.


AUO receives approval on Suzhou CCFL factory investment with Toa Elevam
Shih-wei Kao, DigiTimes.com, Taipei [Thursday 20 March 2003]


AU Optronics (AUO) on March 18 announced that it has received approval from Taiwan’s Investment Commission for its planned joint venture investment in a CCFL (cold cathode fluorescent lamp) factory in Suzhou, Jiangsu Province (China). The joint venture also involves Taiwan-based CCFL producer Toa Elevam. CCFLs are a key component for backlight modules used in TFT LCDs.

AUO plans to invest US$1.2 million, 14% of the planned joint venture’s initial paid-in capital of US$8.63 million.





AU Optronics acquires 20% stake in Fujitsu Display
Gloria Chen, Taipei; Shih-wei Kao, DigiTimes.com [Friday 28 March 2003]


AU Optronics (AUO) yesterday announced that it has invested 1.48 billion yen (about US$12.34 million) to acquire a 20% stake in Fujitsu Display Technologies at a per-share price of 1,974,000 yen.

Earlier this month, AUO reportedly received licensing from Fujitsu for over 180 TFT LCD patents, including MVA (multi-domain vertical alignment)-based, wide-viewing-angle technologies.

In January, AUO signed a memorandum of understanding (MOU) with Japan’s Fujitsu and Fujitsu Display Technologies to carry out a wide range of collaboration in developing LCD technologies, new products, manufacturing capability and various businesses.

[51boyauswedding]

Dow Jones Business News
Taiwan Chi Mei Opto To Build LCD Module Plant In Shanghai
Monday March 31, 3:24 am ET


TAIPEI -(Dow Jones)- Following the foot steps of its competitors, Taiwan`s Chi Mei Optoelectronics Corp. plans to build a liquid crystal display module plant in China, said a Chi Mei Opto executive Monday.
ADVERTISEMENT


Making TFT-LCD modules - or assembling LCD panels with printed circuit boards, integrated circuits and backlights - is a labor intensive part of the manufacturing of TFT-LCDs, and Taiwanese companies build module plants in China to help cut costs, said analysts.

Chi Mei Opto has decided to build such a plant in the Shanghai area, but the company hasn`t finalized the construction schedule and site for the plant, said Jeff Hsu, vice president at the company. It is Taiwan`s second largest maker of thin-film transistor LCDs.

"We don`t have a fixed schedule" for the plan yet and will make sure the supply chain in China can support such a plant before building it, Hsu said.

The company has two TFT-LCD module plants in Taiwan.

Chi Mei Opto`s major rivals, including AU Optronics Corp. , Chunghwa Picture Tubes Ltd. , HannStar Display Corp. and Quanta Display Inc. , have already built or are building LCD module plants in China. This is due in part to lower costs there, as LCD module making is relatively labor intensive.

They built such plants in China also because many of their clients have operations on the mainland, analysts said. Notebook computers and personal computer monitors are currently the most important applications for large-sized TFT-LCDs, and many Taiwanese notebook computer and monitor makers have built plants in China.

Chi Mei Corp. (Q.CHM) holds around 47% of Chi Mei Opto. Chi Mei Corp. is the world`s largest maker of acrylonitrile-butadiene-styrene, a form of plastic.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502 2557; [e-mail]

-Edited by Timothy Gan

[panik]

Dow Jones Business News
Taiwan AU Upgrades 1st Half Revenue Forecast On Good Demand, Price Rises
Friday May 30, 12:02 am ET


TAIPEI -(Dow Jones)- Taiwanese flat panel maker AU Optronics Corp. now expects its January-June consolidated revenue to reach NT$41 billion (US$1=NT$ 34.713) to NT$42 billion, higher than the NT$40.46 billion it predicted previously, said a company official Friday.
ADVERTISEMENT


"Demand has been good...and product prices have been slightly up," said the official at AU`s marketing department.

The company`s consolidated revenue includes revenue from its China operations, where output started in mid-2002.

She reiterated the company`s view that second-quarter revenue and earnings will be better than the first quarter.

The company reported consolidated revenue of NT$18.26 billion and net profit of NT$179 million in the January-March period.

AU is the world`s third largest maker of thin-film transistor liquid crystal displays.

Capacity will remain tight in June and the company is now "cautiously optimistic" about the second half, she added.

Separately, the company`s shareholders Thursday approved NT$0.5 cash and 5% stock dividends on 2002 earnings, AU said in a statement.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502 2557; [e-mail]

-Edited by John Viljoen

[panik]

Reuters
UPDATE - Taiwan`s AU hikes profit outlook as screen prices rise
Wednesday August 6, 6:31 am ET
By Baker Li


(adds analysts quotes and details)
TAIPEI, Aug 6 (Reuters) - Taiwan`s AU Optronics Corp, the world`s third-largest maker of computer display screens, reported surprisingly robust profits on rebounding screen prices and quadrupled its 2003 earnings forecast on Wednesday.

ADVERTISEMENT


AU Optronics (Taiwan:2409.TW - News; NYSE:AUO - News), which commands a global market share of around 12 percent, reported second quarter results that beat market estimates and credited cost-cutting and a wide range of products for outshining competitors.

"The numbers are amazing. While we are upbeat on the demand side for the rest of the second half, supply will be kind of tight," said Yuanta Core Pacific Securities` technology analyst Steven Tseng, adding that meant prices would likely go up.

Where computer monitor demand has helped in the past, AU -- like its bigger rivals in South Korea -- is also betting heavily on flat-screen television demand for future profits.

Large panels for flat screen TVs will make up around one-fifth of AU`s revenues next year, well above an estimated three percent this year, analysts said.

AU`s April-June earnings fell 25 percent from a year earlier to T$2.92 billion (US$85 million) as recovering screen prices were still relatively low. But the figure beat the average T$2.3 billion estimate produced by five analysts polled by Reuters.

And compared to the first quarter, net profit jumped by 15 times as demand for AU`s sleek thin computer screens picked up along with the global economy.

AU raised its 2003 pretax profit forecast to T$10.51 billion from T$2.58 billion, and predicted full-year sales at T$90.5 billion, up from an original forecast of T$89.8 billion.

"I think the big revision in earnings is due largely to cost reduction and a shift to LCD TVs with fatter profit margins," said Alex Wu, an analyst at KGI Securities.

Margins of screens used for large liquid crystal display (LCD) TVs are around 30 percent, while those for LCD monitors and notebook computers hover at around 15-23 percent, Wu said.

SHARES OUTPERFORM

AU, which sells to Dell Computer Corp (NasdaqNMELL - News) and Hewlett-Packard Co (NYSE:HPQ - News), announced results after close of Taipei trade on Wednesday. Its stock rose 0.62 percent to T$32.70, defying a 0.64 percent drop in the main market (Taiwan:^TWII - News).

The stock has jumped 93 percent from a trough in late April, triple the 30 percent gain on the mainboard, as investors anticipated the improved earnings. Based on its new 2003 earnings per share forecast of T$2.46, the shares are trading at a P/E of around 13.3 times.

Monitor screen prices fell from a high of $250 per unit in early 2002, but the average selling price of a standard 15-inch thin film transistor liquid crystal display (TFT-LCD) has since rebounded from around $175 earlier this year to about $200.

AU`s local rivals, such as Chi Mei Optoelectronics Corp (Taiwan:3009.TW - News), have also posted sharp quarter-on-quarter profit rises as demand for flat-screen monitors and notebook PCs increased.

The world`s biggest maker of flat computer screens, Samsung Electronics (KSE:05930.KS - News), saw its second quarter net slump 41 percent as prices for its memory chips and flat screens fell.

AU`s ambitious plan to spend $5.8 billion to diversify into the large, thin-screen television market could pay off, but pales in comparison to Samsung and LG Electronics, which plan to spend a combined $19.6 billion on big screen televisions.

Demand for liquid crystal display (LCD) flat-screen TVs is expected to double almost every year to hit 31.9 million units in 2007 from 1.7 million units in 2002, analysts said.

Some have compared the replacement demand for LCD televisions to the boom seen in the 1970s when viewers swapped their black and white sets for colour ones, but others warn a supply glut could be looming in the fourth quarter or early next year. ($=T$34.4)

[panik]

Dow Jones Business News
Taiwan AU Optronics Sees `03 Pretax Profit At NT$14.1 Billion
Monday October 27, 1:33 am ET


TAIPEI -(Dow Jones)- AU Optronics Corp. (NYSE:AUO - News) , Taiwan`s largest flat panel maker, Monday raised its forecast for 2003 earnings by 34%, after reporting strong profits for the third quarter.
The company now predicts it will post full-year pretax and net profits of NT$ 14.1 billion (US$1=NT$33.992), compared with a previous forecast of NT$10.51 billion.

The company`s 2003 net profit will likely be the same as its pretax profit, due to a government income tax credit for the company`s investment in new panel plants.

The company posted a third-quarter net profit of NT$4.99 billion, up sharply from NT$870 million a year ago.

AU also raised its forecast of 2003 consolidated revenue to NT$102.8 billion, from a previous prediction of NT$97.28 billion, and its forecast of unconsolidated revenue to NT$94.1 billion, from a previous prediction of NT$ 90.52 billion, the company said.

Max Cheng, chief financial officer of AU, said the company now expects to ship a total of 11.7 million large-sized thin-film-transistor liquid-crystal-display panels this year, compared with a previous prediction of 11.2 million.

However, the company lowered its forecast for this year`s shipments of smaller panels to 22.3 million units from 23 million, as it plans to use more of its capacity for large panels, Cheng said.

TFT-LCD displays, initially used in notebook computers, are now gradually replacing traditional cathode-ray-tube desktop computer monitors and TV screens. They can also be used in a wide variety of consumer electronics, including digital cameras and mobile phones.

-By Dan Nystedt and Y.H. Sun, Dow Jones Newswires; (8862) 2502-2557; yu- [e-mail]

-Edited by Andrew Bullard

[panik]

Dow Jones Business News
Taiwan`s AU Optronics November Revenue NT$10.56 Billion Vs NT 5.01 Billion
Thursday December 4, 2:25 am ET


AU Optronics Corp. (NYSE:AUO - News) - Hsinchu, Taiwan
Figures in New Taiwan dollars.


2003 2002
Nov Revenue NT$10,560,539,000 NT$5,011,217,000
Jan-Nov Revenue 86,446,499,000 70,432,141,000
(US$1=NT$34.104)


AU Optronics Corp. is Taiwan`s largest maker of flat panel displays.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502-2557; [e-mail]

[panik]

Dow Jones Business News
Global TFT-LCD Sales Seen Up Over 90% In 4Q `03, 1Q `04
Tuesday December 9, 5:35 am ET


TAIPEI -(Dow Jones)- Global sales of large-sized thin-film-transistor liquid crystal displays will likely soar more than 90% on year in the fourth quarter this year and first quarter of next year on increased shipments and higher prices, a leading research company said Tuesday.

U.S.-based DisplaySearch predicts that sales of large-sized TFT-LCDs will jump 91% on-year to US$7.7 billion in the fourth quarter, on a 51% on-year rise in shipments and 27% on-year increase in blended average selling prices or ASPs. Large-sized TFT-LCDS measure 10 inches or larger diagonally.

ASPs are expected to rise 12% from the third quarter because of a supply shortage and as monitor, notebook and television makers seek to meet holiday demand for their products, DisplaySearch said.

TFT-LCD panels, initially used in notebook computers, are now gradually replacing traditional cathode-ray-tube desktop computer displays and television screens. TFT-LCDs can also be used in a wide variety of consumer electronics, including digital cameras and mobile phones.

In the first quarter of 2004, sales of large-sized TFT-LCD panels are expected to rise 97% from a year earlier to a record US$8.4 billion, on a 37% on-year rise of ASPs and a 44% increase in shipments, the research company said.

ASPs for the first quarter are expected to rise 7% from the previous quarter, as glass and color filter shortages will likely result in price increases for large panels in January, DisplaySearch said.

Glass and color filters are essential components in TFT-LCDs.

"Given the strong revenue outlook and the fact that costs are falling for most suppliers...we expect TFT-LCD suppliers to report record earnings results" in both the fourth quarter and first quarter, said DisplaySearch President Ross Young.

South Korea-based LG Philips LCD Co. remained world No. 1 in terms of large- sized TFT-LCD shipments in the third quarter, with a market share of 21.5%, followed by Samsung Electronics Co.`s 20% and AU Optronics Corp. (NYSE:AUO - News)`s 11.8%, according to DisplaySearch.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502 2557; [e-mail]

-Edited by Sharon Buan

[gontard]

mit lcd bildschirme zur WM 2006

[panik]

Dow Jones Business News
Taiwan`s AU Optronics Dec Revenue NT$11.16 Billion Vs NT$5.13 Billion
Wednesday January 7, 1:36 am ET


AU Optronics Corp. (NYSE:AUO - News) - Hsinchu, Taiwan
Figures in New Taiwan dollars.


2003 2002
Dec Revenue NT$11,163,621,000 NT$5,128,717,000
Jan-Dec Revenue 97,610,121,000 75,507,279,000
(US$1=NT$33.802)


AU Optronics Corp. is Taiwan`s largest maker of flat panel displays.

-By Y.H. Sun, Dow Jones Newswires; (8862) 2502-2557; yu-huay.sundowjones.com

-Edited by Sharon Buan

[panik]

Guru Picks
Gurus Whip The Averages
Matt Rand; data provided by Marketocracy, 01.07.04, 3:22 PM ET

NEW YORK - Investments in technology, telecommunications, health care--along with some exposure to the bull market in gold--helped Marketocracy.com`s M100 stock pickers turn in a 51.5% gain for 2003. That`s double the 25% return of the Dow and S&P 500, and higher even than the 50% gain put in by the resurgent Nasdaq Composite. The M100 closed out 2003 buying small-cap growth stocks and taking profits on some of the technology stocks they`d traded in and out of throughout the year. Gurus bought most enthusiastically into AU Optronics (nyse: AUO - news - people ), a Taiwanese maker of thin-film transistor LCD panels for computers, televisions and consumer electronics like cell phones, PDAs and navigation systems. Rainfall this past year to a key dam in Northern Taiwan has been at its lowest level in at least 40 years, and flat-panel manufacture involves large amounts of water. Last week, the Taiwanese government gave a holiday gift of sorts to AU and other high-tech firms by choosing to divert water from local rice fields in favor of saving it for industry. While AU`s trailing price-to-earnings ratio is nearly 55, analysts expect fiscal 2004 to bring significant earnings growth for the company and the sector, bringing its forward P/E down to 8.4. The stock closed last week at $12.63.

The gurus again made a nanotechnology play one of their top buys for the week. New York-based Harris & Harris Group (nasdaq: TINY - news - people ) is a venture capital firm specializing in nanotechnology upstarts. Harris shares moved up from $10 to $12.65 in the last two weeks, despite finalizing an offering of 2.3 million new shares last week, priced at $8 per share.


Thanks to stocks like Chinese Internet portal Sohu.com, Jim Collins` OTC Insight was up 110% in 2003 and is ranked among Hulbert Financial Digest`s top performers. To get Jim`s current buy list of growth stocks, click here.
Plantation, Fla.-based 21st Century Holding (nasdaq: TCHC - news - people ) sells auto and homeowners` insurance and raised its revenue outlook Dec. 29, saying it expects revenue to rise anywhere from 40% to 50% annually in 2004 and 2005. 21st Century closed the prior week at $17.02 but gained as much as 27.7% the day of the announcement. Shares closed last week at $22.50. The M100 bought the stock in mid-September, and bought into the strength instead of taking profits on the rise.

Gurus were split on their other two top buys, each managing to make the buy list despite considerable selling. Singapore-based China Yuchai International (nyse: CYD - news - people ) manufactures diesel engines and gained 15.3% last week to close at $32.22. The company, which trades at 2.27 times sales, had been a top sell in mid-December, but buyers won out last week.

Buyers also won out on Cal-Maine Foods (nasdaq: CALM - news - people ), a Jackson, Miss.-based egg producer. For the quarter ended Nov. 29, the company reported that sales were up 57.8% from $95 million last year to $149.9 million this year and that earnings were $1.45 per share. The company, which is the only public egg producer in the U.S., has made several attempts to buy back its shares and go private this year, only to have its share price quickly exceed its offer each time. It cancelled plans to go private most recently in mid-November, when the stock was at $14.65. Last week, the stock closed at $32.64, though it hit a high of $44.49 on Dec. 29. Gurus bought in last week at an average price of more than $38.

The top M100 sale was Richmond, Va.-based consumer electronics retailing giant Circuit City Stores (nyse: CC - news - people ). When the company announced on Dec. 17 that its third-quarter loss was only slightly lower, at 12 cents per share, than its 13-cent-per-share third-quarter loss the year before, shares slid 6.7% to $10.34. Things haven`t changed much for the company since then, and it trades at just over $10.

In mid-December, San Ramon, Calif.-based ChevronTexaco (nyse: CVX - news - people ) was a top guru buy, with gurus buying in at an average share price of $80.37. The company has been looking for more oil, partnering with Exxon Mobil (nyse: XOM - news - people ) and Imperial Oil (Toronto: IMO) to explore 50 million acres of Canadian land for oil, as well as putting in the highest bid for exploration rights on parcels of land in Nigeria and Sao Tome. Gurus dumped all of their shares of ChevronTexaco at an average price of $85.21, locking in a profit of almost $5 per share.

Subscribers to small-cap stock guru Jim Oberweis` Oberweis Report first learned about NetEase when he recommended it over a year ago when it traded for $6.40. Even with its drop last week, that`s still a 640% gain. For Jim`s latest recommendations and to download his latest special report, "5 Small Cap Super Stocks," click here [https://www.newsletters.forbes.com/obr/subscribe.php4?16]

Fairfield, NJ-based Measurement Specialties (amex: MSS - news - people ) was another guru sale. The company produces a variety of sensor devices and signed an agreement last month to provide the sensors for an electric erectile dysfunction ring to be produced by Norwegian company Meditron. Measurement Specialties is up 44.25% since the second week of December and trades for $20.

Boise, Idaho-based semiconductor manufacturer Micron Technology (nyse: MU - news - people ) kept most of its 17.7% gain from the second half of December after rumors surfaced that it might admit to the U.S. Department of Justice that it had fixed prices on DRAM chips in return for a free pass on the Justice Department`s investigation of a price-fixing conspiracy among four DRAM manufacturers (including Micron). Gurus sold.

Finally, gurus continued for the second week in a row to take profits on Research in Motion (nasdaq: RIMM - news - people ), the Waterloo, Ontario-based maker of the BlackBerry. The stock gained a spectacular 51% on Dec. 23 after it upped its earnings guidance for the year, and has since sputtered down and then back up through the upper $60s as investors face the decision of whether or not to short the stock.


Top Buys (Net)
AU Optronics (nyse: AUO - news - people )
Harris & Harris Group (nasdaq: TINY - news - people )
China Yuchai International (nyse: CYD - news - people )
21st Century Holdings (nasdaq: TCHC - news - people )
Cal-Maine Foods (nasdaq: CALM - news - people )


Top Sells (Net)
Circuit City Stores (nyse: CC - news - people )
ChevronTexaco (nyse: CVX - news - people )
Measurement Specialties (amex: MSS - news - people )
Research in Motion (nasdaq: RIMM - news - people )
Micron Technology (nyse: MU - news - people )

[panik]

Reuters
Taiwan AU`s Q4 net beats market estimates
Thursday January 29, 5:05 am ET


TAIPEI, Jan 29 (Reuters) - Taiwan`s AU Optronics Corp (Taiwan:2409.TW - News), the world`s No. 3 maker of computer display screens, posted a better-than-expected quarterly profit on Thursday, after global demand for monitors and laptops improved.
ADVERTISEMENT


AU (NYSE:AUO - News) earned a net profit of T$7.57 billion (US$227 million) for the fourth quarter, reversing a year-earlier loss of T$778 million, according to Reuters calculations based on the company`s full-year results.

Analysts had expected AU -- which makes liquid crystal displays (LCD) for global brands like Hewlett-Packard Co (NYSE:HPQ - News) and Dell Inc (NasdaqNMELL - News) -- to earn T$6.2 billion, up from T$4.99 billion in the July-September period, partly on strong Christmas demand.

Although computer screen prices would likely dip later this year as new production lines came onstream, analysts said AU`s net profit would be padded by an anticipated boom in demand for big-screen televisions.

The company, like its bigger South Korean rivals Samsung Electronics Co (KSE:005930.KS - News) and LG.Philips LCD, was expected to hike production of the higher-margin TV panels this year.

AU said in a statement 2003 net profit came to T$15.66 billion, more than double the T$6 billion it made in 2002. The company gave no reason for the results as it is tentatively scheduled to hold an investor briefing on February 10. (US$1=T$33.4)

[panik]

Flat Panels Equal Fat Sales For This Supplier
Friday February 13, 10:04 am ET
By Marilyn Alva


When consumers seek a desktop computer or TV, chances are they`ll eye all those flat-panel screens that seem to be taking over retail aisles, catalogs and online venues.
That`s fine with AU Optronics Corp. (NYSE:AUO - News) and other flat-panel component suppliers, which are racing to help vendors stock those shelves.

Market research firm DisplaySearch expects suppliers to spend a record $9.4 billion this year on factory upgrades and other capital outlays. That`s up 43% from 2003, when spending rose 26%.

"The market is red hot because of strong demand in notebooks, new flat-panel desktop monitors and new flat-panel TVs that are coming out," said analyst Matthew Smith of CIBC World Markets.

One prime beneficiary is Taiwan-based AU. With more than $3 billion in annual sales, it`s the No. 3 worldwide supplier of 10-inch and larger liquid crystal display (LCD) thin panels, with a 12% market share in unit numbers shipped.

"We see that rising to 14% in 2004," said Ross Young, president of DisplaySearch.

He expects AU to ship 19 million large-area LCD panels this year, up from 12 million in 2003.





The two leading large-panel suppliers are Samsung and LG Philips LCD, a joint venture between LG Electronics and Royal Philips Electronics. Smith says each of those firms has 17% of the market.

AU, which is 25% bigger than the next largest supplier, has sufficient scale to let it compete effectively, Smith says.

The company supplies just about all the major LCD consumer electronics manufactures. Two of its largest-end customers are Dell Inc. and Hewlett-Packard Co.

"Dell and HP are enjoying significant growth in notebooks and monitors, and they`re trying to figure out how to penetrate the (flat-panel) TV market," Young said.

Last year`s third quarter marked the first time AU sold more flat-panel LCD monitors worldwide than traditional cathode ray tube, or CRT, monitors.

In the overall desktop market, sales of flat panels are expected to surpass CRT monitors this spring, says Robert Thompson, product marketing manager for Dell.

"We`re two to three quarters ahead of the industry," he said.

In its first foray into flat-panel TVs, Dell launched three models in the fourth quarter: 17-inch, 30-inch and 23-inch sizes. HP plans to introduce TV models this year.

Japan`s Sharp Corp. is the leader in flat-panel TVs, but AU isn`t likely to get much business from it. Nor is anyone else. Sharp makes most if not all of its own panels, Smith says.

As new players such as Dell and HP expand into the LCD TV market, AU`s independent focus on LCD flat panels gives it an edge over vertically integrated rivals LG Philips and Samsung, Smith notes.

The flat-panel TV market is still much smaller than the comparable market for computer monitors.

Last year, branded vendors shipped 48.3 million flat-panel computer monitors, up 66% over 2002, according to industry researcher IDC. It estimates they`ll ship 66.7 million units this year.

By contrast, only about 4 million flat panel TVs were shipped in 2003. Still, that was more than triple the prior year`s figure, IDC says. It estimates shipments this year will double to 8 million units.

Those units should produce plenty of profit, says Bob O`Donnell, IDC`s director of personal technology. He says profit margins on LCD TVs are three to four times higher than margins on personal computers

"There`s more opportunity for profit," O`Donnell said.

Only a small percentage of AU`s revenue comes from the flat-panel TV market. Most comes from desktop monitors and notebooks.

But the company is ramping up its production capacity to meet demand for the larger sizes.

Industry prices are expected to remain firm the next few months, Smith says. He adds that they`ll inevitably fall as factories expand and achieve economies of scale.

For now, industry watchers don`t seem concerned about falling prices.

"We see costs falling faster than price in 2004, so margins could improve," Young said.

AU`s margins have climbed steadily the last few quarters. They hit 26% during last year`s third quarter, up from 10% in the first quarter.

On Tuesday the company reported fourth-quarter and full-year earnings. Quarterly profit reached 51 cents a share, up from a 6-cent loss the prior year. Sales more than doubled to $1.03 billion.

Full-year earnings gained 163% to $1.08 a share. Revenue moved up 41% to $3.08 billion.

Analysts polled by First Call expect earnings this year to reach $1.72 a share.

AU officials could not be reached for comment.

[gontard]

50cent über ami-kurz
NYSE 15,34 15,34 15,45 USD 24.02. 22:00 +0,11 +0,72% 0,000 0,000 15,45 15,20 100 1.456.200 12,18euro

[gontard]

,30
Frankfurt 12,00 12,35 13,10 EUR 25.02. 19:38 +1,10 +9,17% 12,90 13,20 13,10 12,35 0 1.470 13,10
Berlin-Bremen 12,04 12,15 12,15 EUR 25.02. 09:02 +0,11 +0,91% 12,99 13,26 12,15 12,15 0 0 12,15

1.470

NYSE 15,45 16,15 16,35 USD 25.02. 19:34 +0,90 +5,83% 0,000 0,000 16,43 16,10 400 2.906.800 13,08
10% plus

[ROTEBLITZ]

[gontard]

der

Tokyo 19.02.03 (asia-economy.de) Die japanischen Elektronik Konzerne Toshiba Corp und NEC Corp haben mit führenden chinesischen Elektronikherstellern eine Kooperation zur kostensenkenden Produktion geschlossen. Toshiba wird gemeinsam mit der Neusoft Corp aus Shenyang, Chinas größter Softwarehersteller, Software für Fernseher und DVD Rekorder entwickeln und produzieren. Die ersten Produkte für das digitale Fernsehen sind auf das Jahr 2010 angesetzt. Die in China produzierten DVD Rekorder sollen bereits früher in Produktion gehen und in die USA und Europa vertrieben werden.

Die japanische NEC Corp hat eine Kooperation mit Chinas führendem Kommunikationsausrüster Huawei Technologies geschlossen. Die Unternehmen entwickeln und produzieren gemeinsam Internet-Hardware wie Router. Darüber hinaus werden die Unternehmen Systeme für den Mobilfunkstandard der dritten Generation CDMA2000 entwickeln.

Weitere Japan und China Kooperationen sind durch die japanische Sanyo Electric Co Ltd und Haier Group aus China geschlossen worden. Auch der Elektronik Konzern Matsushita Electric Industrial hat eine Kooperation zur Produktion von Kühlschränken mit der chinesischen TCL Corp gestartet.

[panik]

http://www.forbes.com/business/2004/03/03/0303fujiphotofilmp…




Displays
Fuji Buys More Digital Camera Panels From AU Optronics
Adela Lin, 03.03.04, 3:52 PM ET

TFT-LCD panel maker AU Optronics has seen its monthly order of small-size panels from Japan`s Fuji Photo Film rise to over 1 million pieces from 800,000 previously, the Commercial Times reported, without naming a source.

AU Optronics (nyse: AUO - news - people ) is the world`s largest supplier of panels for digital cameras and Fuji (nasdaq: FUJIY - news - people ) is its biggest client in the segment, it added.

[rtq]

WOW!!!!!


Dow Jones Business News
Taiwan`s AU Optronics Feb Revenue NT$12.48 Billion Vs NT$5.40 Billion
Thursday March 4, 2:43 am ET

AU Optronics - Hsinchu, Taiwan

Figures in New Taiwan dollars.

2004 2003
February Revenue NT$12,479,918,000 NT$5,397,961,000
Jan-Feb Revenue 24,615,048,000 10,743,864,000
(US$1=NT$33.343)


AU Optronics Corp. (NYSE:AUO - News) is the world`s third-largest maker of flat panel displays.

[panik]

8:44AM AUO target increased at CIBC to $30 18.06: CIBC raises its target on AU Optronics to $30 from $20. The firm is raising estimates to reflect demand growth, price stability and mix-shifts to larger sizes which continues to drive earnings momentum and upside to expectations. With visibility to FPD demand secure, and supply struggling to catch up, the firm has higher confidence in `04 and `05 EPS growth potential.

[panik]

Reuters
AU Optronics breaks ground on 7G LCD factory
Wednesday April 7, 6:22 am ET


TOKYO, April 7 (Reuters) - Taiwan`s AU Optronics Corp (Taiwan:2409.TW - News; NYSE:AUO - News) said on Wednesday it had started construction last month of a new factory to produce liquid crystal display panels from larger, seventh-generation glass.
ADVERTISEMENT


Construction could be completed in a year`s time, David Su, vice president of the TV Display Unit at AU Optronics, told Reuters on the sidelines of an industry forum.

There are no manufacturers making television panels yet from seventh-generation "motherglass". Japan`s Sharp Corp (Tokyo:6753.T - News) was the first company to start production with smaller, sixth-generation panels in January.

Samsung Electronics Co Ltd (KSE:005930.KS - News) and Sony Corp (Tokyo:6758.T - News) plan to jointly invest $2 billion to manufacture TV panels using seventh-generation glass, which is 1.87 by 2.2 metres.

The venture will start producing LCD panels in the second quarter of 2005.

Display manufacturers are moving to larger-sized glass to manufacture LCD television panels, because they can make more TVs from one piece of glass, allowing them to reduce fixed costs.

"Generation seven is actually good for 40 inches and above. So if you are focused on a 30-inch range, then generation six actually is good enough," Su said. AU Optronics, the world`s third largest display company, said it also planned to have a sixth-generation LCD panel factory up and running by the fourth quarter of 2004, earlier than it had anticipated.

Both the sixth and seventh generation plant will be built in Taichung in central Taiwan.

AU Optronics, which commands around 12 percent of the LCD panel market, said last year that it planned to invest T$200 billion ($6.1 billion) in new plants to meet the rapid growth in demand for large, flat-screen televisions.

The potential flat-panel TV market is vast. LCD and plasma display panel TVs account for only two percent of all existing sets, but their hefty price tag still holds back demand.

Shipments of flat TV displays, a business AU entered late last year, are expected to make up around a fifth of the company`s revenues this year versus about five percent last year, analysts have said.

(US$=T$32.87)

[gontard]

nächste woche 100% 10.60- 20.60

[gontard]

hab meine verkauft