All data are based on the daily closing price as of November 1, 2024

AU Optronics Posts Loss as Display Market Weakens

The Taiwanese manufacturer warns of softening demand after unexpected surge in third quarter
Taiwan
a 2409.TW Mid and Small Cap 2000 Tech 350
Share this on

AU Optronics Corp. reported a third-quarter loss as the Taiwanese display maker grapples with shifting market dynamics and seasonal pressures.

The company posted a net loss of NT$930 million (US$29.1 million) in the quarter, despite revenue climbing 10.9% year-on-year to NT$77.75 billion (US$2.43 billion). The results translate to a loss of NT$0.12 per share.

While the display technology segment saw a 9% quarter-on-quarter boost from stronger-than-anticipated pre-holiday orders, executives warned of cooling demand ahead. The company’s smart mobility unit provided some buffer, growing 4.1% from the previous quarter.

The manufacturer, which completed its acquisition of Germany’s BHTC GmbH in April, maintained relatively healthy operations with 44 days of inventory and a 33.4% net debt ratio. However, management expects traditional seasonal weakness to impact the display unit in the fourth quarter.

The gross profit margin stood at 10.9%, while EBITDA margin reached 10.6%. The company’s outlook suggests some stabilization in display industry supply-demand balance for 2025, with potential growth from mobility and vertical solution segments helping to offset display market fluctuations.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top