AUO Corp., one of the largest flat panel suppliers in Taiwan, said on Wednesday that it made a net loss in 2022 at a time of falling global demand.
At an investor conference, AUO said it posted a net loss of NT$21.1 billion (US$703 million) in 2022, compared with NT$61.33 billion in net profit a year earlier, with loss per share of NT$2.39, after earnings per share of NT$6.44 the previous year.
The weakening bottom line in 2022 came after AUO reported the company incurred NT$10.21 billion in net loss in the fourth quarter of the year, extending from a net loss of NT$10.43 billion in the third quarter, with loss per share at NT$1.33 compared with NT$1.23 loss per share a quarter earlier.
From October to December, AUO said, its consolidated sales rose 5.9 percent from a year earlier to NT$52.65 billion as shipments increased 11.5 percent from the third quarter to about 4.32 million square meters, but the losses were still reported.
AUO said in a statement that the company faced headwinds in 2022 as "the demand from the robust stay-at-home economy in the past two had years gradually faded."
"Additionally, war, inflation and rising interest rates led to lackluster end-market demand and this, combined with high channel inventory, led to a sudden slump in panel demand from brand customers," the company said.
AUO said the company expects the global economy to face more challenges in 2023, with first quarter sales likely to fall by single digits from the previous quarter.
Speaking at the investor conference, AUO Chairman Paul Peng (???) said after inventory adjustments over the past four to five quarters, inventory levels could return to normal in 2023.
For example, Peng said inventories have returned to a healthy level in the TV screen segment.
However, until the impact of high inflation and low economic growth is dealt with, the global flat screen industry will continue to face difficulties in 2023, Peng added.
Also at the investor conference, Frank Ko (???), AUO president, said TV prices are expected to stage a rebound in the second quarter of this year, while the prices of screens used in information electronics items are expected to make a comeback in the second half.
Ko said AUO has been keen to expand globally to meet demand from clients, adding that the company will build a new plant in Vietnam later this year focusing on supplies of monitors used to produce information technology devices expected to be shipped to U.S. and European markets.
The Vietnam plant is scheduled to start commercial production in the first quarter of 2024, Ko added.
AUO held the investor conference after the local equity market closed Wednesday, when AUO shares soared 4.12 percent to close at NT$17.70 after its American depositary receipts (ADRs) rose 2.29 percent overnight.
Strong buying was also seen among shares of rival Innolux Corp., which surged 4.40 percent to end at NT$13.05, and both stocks outperformed the 1.41 percent increase on the main board.
Source: Focus Taiwan News Channel