Published date:2019-10-30
AUO Corporation ("AUO" or the "Company") (TSE: 2409) today held its investor conference and announced its consolidated financial results for the third quarter of 2019(1).
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Consolidated revenues for the third quarter of 2019 were NT$70.05 billion, flat quarter-over-quarter. AUO’s net loss attributable to owners of the Company for the third quarter of 2019 was NT$3.99 billion, with a basic EPS(2) of -NT$0.41.
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In the third quarter of 2019, large-sized panel(3) shipments totaled around 28.67 million units, up by 5.5% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 35.60 million units, up by 7.8% quarter-over-quarter.
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Highlights of consolidated results for the third quarter of 2019
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Looking back to the third quarter, although the year-end restocking demand was not as strong as expected, the Company’s shipment in terms of area still increased from the previous quarter. However, as new capacities kept being added to the market, the panel prices had continued to fall, especially for commodity products. As a result, the Company reported flat quarterly revenues with widening losses for the third quarter. In terms of the financial structure of the Company, inventory turnover days were 34 days and net debt to equity ratio was 18.4%. Both metrics were maintained at a healthy status.
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Looking into the fourth quarter, while entering the traditionally slower season, the market imbalance is expected to continue. During the slower season, the Company intends to moderately adjust its utilization rate, and speed up development of new models for the coming year. Meanwhile, AUO will continue working on value transformation and technological innovation, exploring value-added markets, and expanding profit-generating product lines, so as to persevere the industry downturn.
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(1) All financial information was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the third quarter of 2019 were calculated based on the weighted average outstanding shares of the reporting quarter (9,623 million shares).
(3) Large size refers to panels that are 10 inches and above.
(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.