AUO has Poor Q4 Outlook

By Tom Allen
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AUO has said that it will further decrease factory utilisation rate, to brace for falling demand this quarter, according to the Taipei Times. CEO Paul Peng told investors, after the announcement of AUO’s Q3 results, that the company expects Q4 to be tough, due to slow seasonal demand and a weak global economy.

The company has arranged an early annual equipment maintenance; stepped up the development of new products; and adjusted downward equipment loading rates in accordance with market volatility, said Peng. Equipment usage has also been cut at less-advanced factories, in response to weak demand for PC panels in Q3.

Due to the low industry prospects, AUO lowered its global flat-panel display shipment growth forecast. Expectations were lowered from 4-6% YoY growth to 3-4%.

TV and PC panel sales are expected to fall by high single digits or low double digits in Q4. Prices are expected to decline in low single digits.