31 Oct '12, 11am

CMI likely to swing back to profitability in 4Q12, say sources:

CMI likely to swing back to profitability in 4Q12, say sources Rebecca Kuo, Taipei; Steve Shen, DIGITIMES [Wednesday 31 October 2012] LCD panel maker Chimei Innolux (CMI) is expected to swing back to profitability in the fourth quarter of 2012, as a significant reduction in labor costs will help ramp up its gross margin in the quarter, according to industry sources. CMI has reduced its number of employees from a high of 130,000 to 95,000-96,000 currently by spinning off its touch panel assembly and system assembly businesses, said company chairman Hsing-chien Tuan. The spin-off will result in a 10% sequential reduction in revenues in the fourth quarter but overall gross margin will improve, estimated the sources. In the fourth quarter of 2012, CMI's shipments of large-size LCD panels are expected to stay flat as compared to those shipped in the previous quarter in terms of...

Full article: http://www.digitimes.com/news/a20121031PD210.html

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