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10 | September 2011
Panel makers forecast seven percent growth in shipments of large-area TFT-LCD panels in the third quarter of 2011, after increasing to 180.8 million units in the second quarter, reported DisplaySearch, Santa Clara, Calif. This translates into 11 percent growth quarter-to-quarter (Q/Q) and six percent growth year-to-year (Y/Y). Panel makers expect flat growth in the fourth quarter.
While revenues reached $19.3 billion, an
11 percent gain Q/Q as a result of stable pricing, revenues declined by 16 percent Y/Y, according to DisplaySearch's Quarterly Large-Area TFT LCD Shipment Report. Y/Y revenue growth for monitor, notebook PC and TV panels were all negative.
"The TFT-LCD industry has been in
oversupply for more than a year, and Q1 2011 was at the bottom of the cycle. Prices
TFT-LCD panel shipments to grow7%inQ3
rebounded slightly in Q2, and both shipments and revenues increased. However, this was just a short-term rebound, as stagnant economic conditions and low consumer confidence continue to exert a drag on demand, especially for IT products and TVs," stated David Hsieh, vice president, Greater ChinaMarket, DisplaySearch. "Panel makers did not achieve their goal of growing Q2 2011 shipments 18 percent Q/Q, and slow demand is eroding panel prices in Q3."
DisplaySearch reports that most LCD-TV
set makers are reducing 2011 panel demand forecasts to cut costs and to maintain low inventory levels.
"Panel prices are becomingmore
negotiable due to the concern over weakening demand, and falling prices will encourage panelmakers to cut capacity utilization in 2H 2011," said DisplaySearch. "This is likely to persuade panelmakers to set conservative shipment targets. This is abnormal for second half shipment targets, which typically aimfor strong growth."
Lower panel prices at the end of July and at
the beginning of August have caused panel makers to become concerned about the second half conditions, said DisplaySearch.
www.displaysearch.com Avnet grows sales by nearly 39% in FY11
Avnet Inc., Phoenix, Ariz., has increased its sales by 38.5 percent in fiscal year 2011, ended July 2, 2011, compared to the previous fiscal year, reaching $26.5 billion thanks to several acquisitions and organic growth. Pro forma revenue increased 17.1 percent year over year.
"We began our fiscal year with three
significant value-creating acquisitions that expanded our global footprint in higher growth markets and increased our customer base and franchised supplier line card. These investments, combined with double-digit, year-over-year organic growth, added over $7 billion to our top- line," stated Rick Hamada, Avnet's chief executive officer.
For its fourth quarter FY2011, Avnet's
revenue reached a record of $6.91 billion, increasing 32.6 percent year over year. Pro forma revenue increased 13.5 percent.
Avnet ElectronicMarketing's fourth
quarter FY11 revenue grew 26.8 percent year over year, achieving record sales of
$3.96 billion, with the EMEA and Asia regions, excluding Japan, delivering double-digit organic growth.
Avnet ElectronicMarketing's book-to-bill
ratio dropped below one in the June quarter for the first time in nine quarters, as concerns over supply-chain disruptions related to the Japan disasters lessened and lead times reduced, said Avnet.
"It appears the concerns over slowing
economic growth and more normalized lead times are influencing customers to be cautious placing new orders," stated Hamada. "With operating margins at the high end of our target range and ROWC above our goal, we expect EMto continue to solidly grow economic profit."
For the first quarter of fiscal 2012, Avnet
expects EMsales to be in the range of $3.75 billion to $4.05 billion. Consolidated sales are projected to reach between $6.25 billion to $6.85 billion.
www.avnet.com www.electronics-sourcing.com
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