Demand surging for flat screens
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AU's rivals include South Korean maker Samsung.
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TAIPEI, Taiwan (Reuters) -- Taiwan's AU Optronics, the world's third-largest flat screen maker, expects sales next year to grow 50 percent on strong demand for notebook computers and monitors.
AU has a 12 to 13 percent share of the global market for liquid crystal displays (LCDs), focusing mostly on screens for computer vendors such as Dell and Hewlett-Packard.
AU is betting heavily on demand for LCDs for flat-screen televisions, which analysts said would make up around a fifth of AU's sales next year.
Its rivals include South Korean brands Samsung and LG, and Japan's Sharp. Samsung said in October it was considering a joint venture with Japan's Sony Corp to make screens for TVs.
"Sales for next year will likely rise 50 percent because demand from downstream notebook computer and monitor makers remains strong," a company spokeswoman told Reuters, confirming a forecast made by AU President H.B. Chen in an interview with a local newspaper.
That compared to the company's estimated sales of T$102.8 billion ($3 billion) for this year, said the spokeswoman, who declined to be identified.
Analysts had been expecting a 36.5 percent rise to T$137.8 billion from T$101 billion, according to 16 forecasts compiled by Reuters Research.
"If you take a look at the demand side, you would agree with AU's forecast," said Debbie Wu, an analyst who tracks the display industry for Yuanta Core Pacific Securities.
The optimistic forecast helped AU's Taipei-listed shares end up 0.51 percent at T$39.80 in a flat market.
AU is the second major Taiwan tech company to give a 2004 forecast. Acer Inc, the island's top personal computer firm, said on Monday it expected sales to rise 40 percent every year for the next few years.
AU posted a five-fold jump in third-quarter profits last month thanks to rising computer demand and its shift into making more profitable flat screens for TVs, cameras and mobile phones. It also hiked its 2003 pretax profit forecast by 34 percent.
AU is expected to ship about 16 million large screens for computers and TVs in 2004, compared with 11.5 million projected for this year, Wu said.
AU plans to spend $5.8 billion to beef up its presence in the LCD TV market as consumers replace boxy televisions with big, flat models.
Copyright 2003
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
