AUO makes net loss in 2022
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 (彭双浪) 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. Read More…
