TCL bucks screen trend with positive profit alert
Editor | 16-07-2012
Flying in the face of recent research suggesting a slowing down of LCD screen shipments, display firm TCL Multimedia Technology Holdings is expected to record a higher profit for the six months ended 30 June 2012.
Based on its preliminary review of the unaudited management accounts of the Group, TCL says that the expected profit was mainly attributable to a significant increase in the sales volume of LCD TVs. This compares well to the LCD TV market in general for which, according to the latest NPD DisplaySearch Quarterly Global TV Shipment and Forecast Report, shipments are now expected to grow at a slower pace in 2012 than 2011.
The company partly attributes its strong performance to what it calls “continuous improvement” of the Group's product mix and a one-off gain from the acquisition of a 100% equity interest in TCL Optoelectronics Technology its 60% owned-subsidiary, Huizhou TCL Coretronics which took place in the first quarter of 2012.
TCL has raised its 2012 sales target of LCD TVs from 13.80 million sets to 15.20 million sets, an increase of approximately 40% compared with the 10.86 million LCD TVs sold in 2011. According to other DisplaySearch data, the Group's global LCD TV market share increased from 4.9% to 5.6% in the first quarter of 2012, bringing its ranking up to No. 5 from No. 7 in 2011. This marks the first time a Chinese TV maker being ranked in the top five in terms of global LCD TV market share. The Group's LCD TV sales reached 6.477 million sets for the first six months of 2012, representing an increase of 60.6% year-on-year.
Even though it expresses clear pride in its performance, TCL does recognise the general market conditions and cautions that it is not optimistic about China in terms of its macro-economy and industry growth, and expects sales growth to slow in the second half of 2012 compared with the first half.