Innolux leads panel industry with profits in fourth quarter
By Ted Chen, The China PostTAIPEI, Taiwan -- Panel maker Innolux Corp. (群創), yesterday announced stellar results for the fourth quarter of last year, with revenue holding at NT$129.6 billion and net income reaching NT$3.1 billion.
February 27, 2013, 12:14 am TWN
The company's performance exceeded the NT$1 billion expected by institutional investors, making Innolux one of the first companies to yield profit in the industry, while its margins reached 7.3 percent, representing quarter-on-quarter growth.
The company's operations began to improve in the third quarter, and turned profitable during the fourth quarter last year, with margins reaching 3.2 and 7.3 percent respectively.
For the third quarter of last year, the company bore the combined effects of fines levied for its antitrust infractions, and the new IAS 36 standards concerning impairment of assets as stipulated by the International Financial Reporting Standards, resulting in losses of NT$3.2 billion for the period.
Despite the impact of loss recognition, the company's earnings per share (EPS) for the fourth quarter improved from the third quarter's minus NT$0.52 to minus NT$0.43. In addition, the company's cumulative 2012 EPS of minus NT$3.99 improved from 2011's minus NT$8.81.
The company said that it is in negotiations with banks in hopes of gaining an additional NT$20 billion of capital.
For its outlook of 2013, the company is anticipating a slight decline in the first quarter, which is the traditional low season, but indicated that it is confident of maintaining the improved performance seen in the fourth quarter of last year, citing growing demands in various formats of smaller-sized panels intended for mobile devices, and the introduction of high-resolution 4K2K panels for TVs.