Taiwan AUO's net profit is reduced by 96%, and LED and solar cells will be invested in the future.
The well-known LCD panel manufacturer Taiwan AU Optronics (AUO) in July 2008 to September (the third quarter) settlement results significantly reduced revenue. Sales decreased by 25% from the same period of the previous year to NT$10,072 million. Operating profit decreased by 90% year-on-year to 263.83 million Taiwan dollars. Net profit decreased by 96% year-on-year to 860 million Taiwan dollars.
In the third quarter, the supply of large LCD panels decreased by 6.9% from the same period of the previous year to 2.07 million. However, in terms of area, it is roughly the same as the same period last year. The price per square meter decreased by 27.3% from the same period of the previous year to $1089. The average price of LCD panels used in TVs was $312 per block, a decrease of 6.6% from the same period of the previous year. The LCD panel used in personal computers was $77, a decrease of 36.9%.
The supply of small and medium-sized LCD panels increased by 50.2% over the same period of the previous year, reaching 61.1 million pieces, and sales increased by 7.1% year-on-year to reach 15 billion Taiwan dollars. The business situation is good.
Chen Lai, president of the company, proposed a policy to improve performance in the LCD panel business: efforts to cut costs. Produce products with added value. Strengthen cooperation with TV manufacturers. The company announced plans for production capacity as of December 2008, but all factories have the same values ​​as they did in September 2008. President Chen said: LED and solar cells will be invested in the future. (Nikkei BP)
AU Optronics Appoints Chen Laizhu as CEO to Continue Production Reduction in Response to Economic Recession
The reporter learned from AU Optronics Co., Ltd. on the 26th that the board of directors of the company has approved the promotion of general manager Chen Laizhu as the chief executive officer (CEO), effective January 1 next year. Chen Laizhu will continue to serve as general manager.
In terms of revenue, AU Optronics is the world's second largest LCD panel manufacturer. AU Optronics said that from January 1 next year, the company's current CEO Chen Xuanbin will be the full-time vice chairman, he will continue to be responsible for AUO's medium and long-term development strategy and improve the company's competitiveness.
According to the data, Chen Laizhu was the director of the first LCD monitor factory in 2000-2001, and later joined AU Optronics as the general manager of AUO Hsinchu Plant and the deputy general manager of the manufacturing headquarters. In total, he is currently the general manager of AU Optronics. In addition, Chen Laizhu is the fifth president of Taiwan's Thin Film Transistor Liquid Crystal Display Industry Association (TTLA) and has extensive experience in the LCD industry.
AUO previously announced an unaudited quarterly net profit of NT$860 million. This is the company's lowest quarterly net profit in six quarters, down 96% from the revised net profit of NT$22.57 billion in the same period last year. In addition, due to the global economic downturn, AUO is continuing to cut production by informing some employees to take annual leave. Today, the question before Chen Lai assist is how he can lead AU Optronics out of this industry-wide crisis. (Beijing Business Daily)
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