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Chimei Innolux denies reports it will spin off lamination business

2012/08/09 09:49:46

Taipei, Aug. 9 (CNA) Chimei Innolux Corp., Taiwan's largest flat panel maker, said Wednesday that a local media report that it plans to spin off its lamination business was not true.

Earlier in the day, the Chinese-language United Evening News reported that Chimei will split its lamination division to save costs and put more resources on its core business.

However, Chimei denied the spin-off plan and said the company will continue to focus on display technology and management efficiency, according to a filing with the Taiwan Stock Exchange.

"In order to enhance integrated technology, Chimei will terminate its labor-intensive traditional lamination business, but will focus on more advanced and value added in-cell/on-cell touch panel technology," the Miaoli-based company said.

Chimei on Tuesday reported a net loss for the second quarter of NT$9.57 billion (US$319.6 million), or NT$1.31 per share, compared with a net loss of NT$12.77 billion, or NT$1.75 per share, for the first quarter.

The company also posted a NT$7.7 billion operating loss for the second quarter, down from NT$12.13 billion in the first quarter.

Local analysts said the improvement in its bottom line reflected an increase in shipments and product prices, but it came as no surprise because the second quarter was a better quarter for the flat panel industry.

(By Jeffrey Wu)