Taiwan-based liquid-crystal-display (LCD) panel maker Chunghwa Picture Tubes Ltd. announced in mid-November 2009 that it expects to cut back operational losses more this quarter due to the forecast of…
Taiwan-based liquid-crystal-display (LCD) panel maker Chunghwa Picture Tubes Ltd. announced in mid-November 2009 that it expects to cut back operational losses more this quarter due to the forecast of stabilization of prices due to rebounding demand and a rise in new orders. Moreover, a power disruption at Corning Inc.“s Taichung plant, which limited the company“s shipments last quarter, is expected to help raise equipment utilization, according to Chunghwa Picture president Kay Chiu. “Without the tight glass supply, operations will improve,” Chiu said. “The worst point was in October. Supply should start to improve from now on.” Chunghwa Picture“s sales dropped 17.7% to TWD 5.31 billion in October compared to September, representing a year-on-year decrease of about 29%, the company said. It would still be “quite difficult” for Chunghwa Picture to return to the black this quarter, Chiu said, also because of its smaller scale. “But operations will improve gradually,” Chiu said. “There will be no price collapse in the fourth quarter, as inventory, which was the main factor behind last year“s price slump, appears healthy.” Chunghwa Picture“s financial statement showed that operating losses had narrowed to TWD 4.51 billion in the third quarter, from losses of TWD 8.65 billion in the second quarter. Shipments of computer and TV panels are expected to increase 5-15% this quarter compared to 5.2 million units in the third quarter. Chunghwa Picture said it would not rule out reducing some capital shares by canceling them in order to improve its financial structure, adding that the company would focus on niche and high-margin products such as 3D and touch-panel displays to optimize its product line, rather than providing a full range of products. Chunghwa Picture planned to ship new 15.6-inch 3D panels for use in PC monitors later in November after recently shipping 7-inch and 10-inch 3D panels to Japanese and Chinese customers. “Our potential customers are in PC games and the Pachinko machine sector,” said Chen Kuang-lang, a vice president of Chunghwa Picture“s research and development centre. “The margin is three times higher than for the regular two-dimensional display panels,” Chen said. Chen also said that the company expected to ship its first batch of 10.1-inch touch panels for use in netbook computers in January 2010, and to supply 15.6-inch notebook touch panels to customers in the second quarter of 2010.