Bloomberg News

Chimei Loss Widens as TV Demand Slump Pushes Prices Lower

November 01, 2011

(Updates with third-quarter data in second paragraph.)

Oct. 31 (Bloomberg) -- Chimei Innolux Corp., Taiwan’s largest maker of liquid-crystal displays, posted its fifth consecutive quarterly loss as a faltering global economy cuts demand for panels used in televisions and computers.

Third-quarter net loss was NT$17.3 billion ($578 million), from a loss of NT$3.6 billion a year earlier, according to Bloomberg calculations based on nine-month data filed by the Miaoli, Taiwan-based company to the exchange today. The average of 14 analyst estimates was for a loss of NT$9 billion.

Chimei’s result means each of the world’s top-four panel makers posted losses totaling more than $1.7 billion for the period. Demand and prices may not rebound until next year, officials at LG Display Co. and AU Optronics Corp. said at earnings conferences this month. Chimei didn’t provide a breakdown of results or guidance.

Nine-month net loss was NT$44.5 billion, compared with net income of NT$9.3 billion a year earlier, according to Chimei’s exchange filing today.

Shipments of larger panels, used in televisions and computers, climbed 4.3 percent from the prior quarter to 37 million units, it said in an Oct. 7 statement. The company on Aug. 4 forecast large-panel shipments would be little changed.

Chimei Innolux, formed through a three-way merger in March last year, dropped 2.4 percent to close at NT$12.2 today in Taipei before the earnings announcement. The stock has lost 70 percent this year while the benchmark Taiex index has declined 15 percent.

--Editors: Frank Longid, Anand Krishnamoorthy.

To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net.


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