LCD panel makers CPT and HannStar announce huge losses for 3Q08
[Wednesday 29 October 2008]
Chunghwa Picture Tubes (CPT) and HannStar Display have both reported huge losses for the third quarter as a result of weak demand and fast falling LCD panel prices.
CPT's consolidated net losses for the third quarter totaled NT$6.08 (US$181.62 million), compared to net profits of NT$1.18 billion for the second quarter.
HannStar made consolidated net losses of NT$3.21 billion in the third quarter, compared to profits of NT$2.41 billion for the second quarter.
CPT president Chuang-Yi Chiu said that in the midst of the global financial crisis, the company will give priority to profitability over the expansion of market share. CPT will impose strict inventory controls, preserve cash, and actively develop products in the 16:9 format, he said.
HannStar president David Joe said the company expects large-size LCD panel prices to fall 10% sequentially in the fourth quarter. He said shipments in the fourth quarter will drop 25-35% sequentially as a result of production cuts.
The huge losses in the third quarter have already reduced CPT's profits for the first three quartets of 2008 to only NT$113 million, while HannStar's profits for the first three quarters total NT$1.5 billion. Industry observers estimate that both will continue to see losses in the fourth quarter.
CPT's margins for its TFT LCD business dropped to negative 9.3% in the third quarter, compared to 18.9% in the second quarter. Inventory turnover increased to 49 days in the third quarter compared to 47 days in the second quarter.
HannStar's LCD panel shipments dropped 3.3% sequentially to 4.75 million units in the third quarter, with average selling prices (ASPs) falling 26%. The company shipped 820,000 own-brand HannsG LCD monitors in the third quarter. HannStar's inventory turnover in the third quarter was 24 days.
[Wednesday 29 October 2008]
Chunghwa Picture Tubes (CPT) and HannStar Display have both reported huge losses for the third quarter as a result of weak demand and fast falling LCD panel prices.
CPT's consolidated net losses for the third quarter totaled NT$6.08 (US$181.62 million), compared to net profits of NT$1.18 billion for the second quarter.
HannStar made consolidated net losses of NT$3.21 billion in the third quarter, compared to profits of NT$2.41 billion for the second quarter.
CPT president Chuang-Yi Chiu said that in the midst of the global financial crisis, the company will give priority to profitability over the expansion of market share. CPT will impose strict inventory controls, preserve cash, and actively develop products in the 16:9 format, he said.
HannStar president David Joe said the company expects large-size LCD panel prices to fall 10% sequentially in the fourth quarter. He said shipments in the fourth quarter will drop 25-35% sequentially as a result of production cuts.
The huge losses in the third quarter have already reduced CPT's profits for the first three quartets of 2008 to only NT$113 million, while HannStar's profits for the first three quarters total NT$1.5 billion. Industry observers estimate that both will continue to see losses in the fourth quarter.
CPT's margins for its TFT LCD business dropped to negative 9.3% in the third quarter, compared to 18.9% in the second quarter. Inventory turnover increased to 49 days in the third quarter compared to 47 days in the second quarter.
HannStar's LCD panel shipments dropped 3.3% sequentially to 4.75 million units in the third quarter, with average selling prices (ASPs) falling 26%. The company shipped 820,000 own-brand HannsG LCD monitors in the third quarter. HannStar's inventory turnover in the third quarter was 24 days.