AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the third quarter of 2016(1).
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Consolidated revenues in the third quarter of 2016 were NT$86.02 billion, up by 7.4% from the previous quarter. Gross profit was NT$11.31 billion, with a gross margin of 13.1%. Operating profit was NT$5.76 billion, with an operating margin of 6.7%. AUO’s net profit for the third quarter of 2016 was NT$4.62 billion. Net profit attributable to owners of the Company was NT$4.90 billion, with a basic EPS(2) of NT$0.51.
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In the third quarter of 2016, large-sized panel(3) shipments totaled 29.27 million units, representing an increase of 2.8% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter exceeded 37.97 million units, down by 10.6% quarter-over-quarter.
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AUO’s unaudited consolidated results for the third quarter of 2016 were highlighted as below：
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Looking back on the third quarter, the end demand for TV has been robust. Thanks to the inventory restocking demand for the year-end holiday season, the Company’s panel supply has remained tight and panel prices have been on the rise, which contributed to a 7.4% growth of its revenues compared to the previous quarter. The Company’s strategy to quickly respond to industry trends and to focus on value-up products has been quite successful, and consequently made significant improvements in its profitability. AUO’s operating profit for the third quarter reached NT$5.76 billion, which represents a 69.7% growth from the same period last year. Operating profits for the first three quarters turned to black, with a profit of NT$0.78 billion. Meanwhile, its net profit for the third quarter returned to positive and reached NT$4.62 billion, increased by 36.6% from the same period last year.
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Looking at the fourth quarter, while entering the traditionally slower season, the Company expects customers’ demands to stay at a high level. AUO hopes to take this opportunity to maximize its capacity value. The Company will keep developing advanced display technologies, as well as expanding the depth and scope of its existing value-up products, with an aim to jointly build long-term competitive advantages and operational excellence and to create a mutually beneficial relationship with its customers.
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(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the third quarter of 2016 was calculated based on the weighted average outstanding shares of the first nine months of 2016 (9,624 million shares).
(3) Large size refers to panels that are 10 inches and above in diagonal measurement.
(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.