Innolux swings to black in first quarter
Taiwan LCD maker benefits from demand for large panels
TAIPEI -- Taiwanese LCD panel maker Innolux reported net profit of 11.8 billion New Taiwan dollars ($389 million) for the quarter ended in March on growing demand for large television panels, the Hon Hai Precision Industry affiliate announced Wednesday.
Sales grew 52% year on year to NT$86 billion. The company logged a NT$8.5 billion net loss in the year-earlier period.
Strong sales of large televisions in the U.S. and emerging Asian countries tightened panel supply and drove up unit prices, boosting profit. Liquid crystal display panels fetched $399 per sq. meter, up 34% in a year.
However, China's biggest panel maker, BOE Technology Group, and others are planning to launch production at new factories. Observers expect panel prices to fall in the second half of the fiscal year as supply increases.
Taipei-based Hon Hai, better known as Foxconn Technology Group, and its subsidiary Sharp are proceeding with plans to build a factory in the U.S. Innolux is exploring ways to cooperate with Hon Hai on the project, Chairman and CEO Wang Jyh-chau said on the earnings conference call.