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AU Optronics Reports Fourth Quarter 2019 Financial Results

AU Optronics Corp. ("AUO" or the "Company") (TSE: 2409) today held its investor conference and announced its consolidated financial results for the fourth quarter of 2019(1).

 

Consolidated revenues for the fourth quarter of 2019 were NT$61.97 billion, down by 11.5% quarter-over-quarter. AUO’s net loss attributable to owners of the Company for the fourth quarter of 2019 was NT$8.83 billion, with a basic EPS(2) of -NT$0.92.

 

For the fiscal year of 2019, consolidated revenues totaled NT$268.79 billion, a decrease of 12.6% year-over-year. Net loss attributable to owners of the Company was NT$19.19 billion, with a basic EPS(2) of -NT$2.00.

 

In the fourth quarter of 2019, large-sized panel(3) shipments totaled around 26.53 million units, down by 7.5% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter reached around 37.46 million units, up by 5.2% quarter-over-quarter.

 

For the full year of 2019, large-sized panel shipments were around 108.24 million units, a decrease of 5.7% from the previous year. Small and medium-sized panel shipments totaled around 131.02 million units, down by 21.4% year-over-year.

 

Highlights of consolidated results for the fourth quarter of 2019
  • Revenues of NT$61.97 billion
  • Operating loss of NT$6.51 billion
  • Net loss attributable to owners of the Company at NT$8.83 billion
  • Basic EPS(2) was -NT$0.92
  • Gross margin was -2.4%
  • Operating margin was -10.5%
  • EBITDA(4) margin was 4.2%
  • Operating margin of Display Segment was -10.6%
  • EBITDA(4) margin of Display Segment was 4.4%

 

 

Highlights of consolidated results for the fiscal year of 2019
  • Revenues of NT$268.79 billion
  • Operating loss of NT$20.47 billion
  • Net loss attributable to owners of the Company at NT$19.19 billion
  • Basic EPS(2) of -NT$2.00
  • Gross margin was 0.2%
  • Operating margin was -7.6%
  • EBITDA(4) margin was 5.9%
  • Operating margin of Display Segment was -7.6%
  • EBITDA(4) margin of Display Segment was 6.1%

 

Looking back to 2019, end market demand was relatively weak. The ramping up of new capacities also intensified the imbalance between market supply and demand. As a result, panel prices fell sharply, while revenues declined by 12.6% year over year to NT$268.79 billion in 2019. Profitability was affected, thus resulted in a full-year loss. Still, the Company has maintained a stable financial structure, with 35 days of inventory turnover and 17.7% of net debt to equity ratio in the fourth quarter. Both metrics were kept at a healthy status.

 

Looking into 2020, the panel industry continues facing challenges and uncertainties. By leveraging its robust R&D capability and healthy financial structure, the Company will continue striving for its value extension strategy, expanding its scope of businesses to services, downstream systems and solutions. Looking forward to this strategy for transformation gradually coming to fruition in the future, which may enable the Company to break away from the imbalanced panel industry.

 

 

 

(1) All financial information was prepared by the Company in accordance with Taiwan IFRS.

(2) Basic EPS in the fourth quarter of 2019 was calculated based on the weighted average outstanding shares of the reporting quarter (9,571 million shares); Basic EPS in the fiscal year of 2019 was calculated based on the weighted average outstanding shares of the reporting year (9,597million shares).

(3) Large size refers to panels that are 10 inches and above.

(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.