Innolux has said that its panel shipments for all sizes are likely to fall by a double-digit rate in the first quarter of 2020 due to decreased working days during an extended Lunar New Year holiday in China in the wake of the coronavirus outbreak.
Shipments in both of its large-size and small- to medium-size panel segments are expected to drop 17-19% sequentially in the first quarter, the company said, but ASPs for large-size panels are likely to edge up 1-3% and those of small- to medium-size panels to move up 4-6% on quarter.
The company’s China plants in Ningpo, Foshan and Shanghai have resumed work since February 10, while its plant in Nanjing, China is still waiting for a restart permit from the local government, said the company.
As for demand for panels, it expects the outbreak to restrain demand for consumer electronics products in the end market, particularly in China, which in turn will undermine demand for panels.
The company said that it has been in contact with clients and supply chain partners to align its production lines in order to fulfill its orders on time.
Innolux posted net loss of NT$6.859 billion (US$228.7 million) or NT$0.71 per share for the fourth quarter of 2019. For all of 2019, net loss totaled NT$17.44 billion or NT$1.77 per share.
For January 2020, it posted revenues of NT$16.6 billion, down 24.9% on month and 21.8% on year. January’s figures were the company’s lowest in five months.
Shipments of large-size panels totaled 8.88 million units in January, down 21.3% from the previous month. Those of small- to medium-size panels reached 21.64 million units, decreasing 25.9% on month. Digitimes