AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the fourth quarter and fiscal year of 2013(1).
Consolidated revenues in the fourth quarter of 2013 were NT$102,703 million (US$3,443 million)(2), down 4.1% from the previous quarter. Gross profit was NT$7,656 million (US$257 million), with the gross margin of 7.5%. Operating profit was NT$1,075 million (US$36 million), with the operating margin of 1.0%. AUO’s net profit for the fourth quarter of 2013 was NT$1,081 million (US$36 million). Net profit attributable to owners of Company was NT$940 million (US$32 million), with a basic EPS of NT$0.10(3) (US$ 0.03 per ADR).
For the fiscal year of 2013, unaudited consolidated revenues increased by 10.0% year-over-year to NT$416,363 million (US$13,958 million), with net profit of NT$4,253 million (US$143 million) or a basic EPS of NT$0.45(3) (US$0.15 per ADR).
4Q 2013 Result Highlights
AUO reported the following unaudited consolidated results for the fourth quarter of 2013:
- Revenues of NT$102,703 million, down 4.1% quarter-over-quarter
- Net profit of NT$1,081 million
- Basic EPS of NT$0.10(3)
- Gross margin was 7.5%
- Operating margin was 1.0%
- EBITDA(4) margin was 16.0%
Fiscal Year 2013 Result Highlights
AUO reported the following unaudited consolidated results for the fiscal year of 2013:
- Revenues of NT$416,363 million, up 10.0% year-over-year
- Net profit of NT$4,253 million
- Basic EPS of NT$0.45(3)
- Gross margin was 8.2%
- Operating margin was 2.0%
- EBITDA(4) margin was 17.3%
In the fourth quarter of 2013, large-sized panel(5) shipments totaled around 30.2 million units, up by 2.8% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 41.2 million units, down by 6.6% quarter-over-quarter. For the full year of 2013, large-sized panel shipments reached 117.0 million units, down by 5.1% from 2012. Small and medium-sized panel shipments totaled around 152.5 million units, down by 1.3% compared to the previous year.
Looking back to the fourth quarter, market prices for TV panels were still on the decrease. Nevertheless, through the cost control and operating efficiency improvement, AUO continued to generate profits with operating margin and EBITDA margin achieving 1.0% and 16.0%, respectively. In addition, the Company’s area shipment for the quarter also reached record high. On the other hand, thanks to the prudent inventory management, the Company’s amount of inventory continued to decline, while its days of inventory further improved to 38 days and hit a four-year low.
Looking forward to 2014, displays will continue to follow the trends of better resolution and bigger screens. AUO has successfully launched the word’s first UHD 4K Curved LCD TV display and pioneered in mass production of the 6-inch WQHD (resolution 2560×1440) ultra high resolution LCD panel for Smartphones at the end of last year(6). The Company will continuously focus on the technological upgrade and product differentiation. It will also proactively develop the sectors with high growth potential as well as high entry barriers, such as car displays, hoping to discover growth momentum and secure technological lead within the highly competitive TFT-LCD industry, with an aim to further enhance its operating performance.
(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Amounts converted by an exchange rate of NTD29.83:USD1 based on Federal Reserve Bank of New York, USA as of December 31, 2013.
(3) AUO issued new ADSs in May 2013. Basic EPS in both the fourth quarter and the fiscal year of 2013 were calculated based on the weighted average outstanding shares of the fiscal year of 2013 (9,349 million shares).
(4) EBITDA = Operating Income + D&A, that is, operating income before depreciation and amortization.
(5) Large size refers to panels that are 10 inches and above in diagonal measurement while small and medium size refers to those below 10 inches.
(6) Based on the available market research information as of January 27, 2014.