Liquid-crystal display maker AU Optronics jumped its daily limit of 6.9% on Taiwan's stock exchange after reporting record monthly sales. The company reported sales increased 92.6% over last year's September figures. The news was bullish for LCD makers, which have taken market share from plasma and glass-tube display makers. LG Philips LCD Co., which reports earnings tomorrow, surged 7.1% in Seoul, and other LCD producers finished higher in Tapei. "The revenue number came in much better than I expected," said Robyn Hsu at Truswell Securities Investment Trust Co. in Taipei. "That suggests the panel prices are rising, and that is definitely good news for profitability." Hsu's trust already owns shares of AU Optronics, and said he was considering buying more after the sales numbers was released. Also, according to a Lehman Brothers analyst, sales of LCD televisions are estimated to increase 86% to 78 million units this year, while plasma sales will rise 22% to 13 million. Sales of glass-tube TVs are projected to fall 18%. Shares of AU Optronic's ADR closed up 7.7% to $19.21 Monday.
Sources: Bloomberg, RTT News
Commentary: AU Optronics Forecasts Profitability in Q2 on Rising LCD Panel Prices • LCD Market Update: Channel Inventories a Concern?
Stocks/ETFs to watch: AUO, LPL. Competitors: PHG, MC. ETFs: EWT
Earnings call transcript: AU Optronics Q2 2007
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