10.22.2001
Revamps 2001 forecasts

• AU Optronics lowered ‘01 forecasts - net sales down 3% to NT$34bn and expected net loss of NT$6.9bn. Revised results are in line with market and our expectations. Weaker than expected panel price and greater non-operating loss (provisions for inventory and short-term investment) are major reasons for forecast revisions. Firm indicates Oct. large size panel shipments will rise around 25% to 500k, backed by increased demand for NB PC and monitor. Short-term, we maintain a Trading Buy due to expectation of return to profitability in 2002, management changes, and next month’s CB issue.