Taiwan's AU Optronics Q4 loss worse than expected

TAIPEI Jan 27 (Reuters) - Taiwan's AU Optronics Corp (2409.TW), the world's No.4 LCD maker, posted a worse loss than expected in the fourth quarter, hurt by weaker demand that pulled panel prices lower and by a strong Taiwan dollar and customer inventory control.

That could dim the prospects for AU (AUO.N) in early 2011 as the display sector continues to struggle with sluggish sales of personal computers and flat-screen TVs that require liquid crystal displays (LCDs).

AU, which supplies major brands such as Hewlett Packard Co (HPQ.N), Dell Inc (DELL.O) and Sony Corp (6758.T), said on Thursday it had a net loss of T$11.34 billion ($390.4 million) for October-December. It was its first quarterly net loss in a year.

That compared with a net loss of T$7.9 billion in the same period a year earlier and a T$227 million profit in the previous quarter. It was expected to report a net loss of T$6.48 billion, according to a consensus forecast by Thomson Reuters I/B/E/S.

South Korea's LG Display (034220.KS), the world's No.2 LCD maker, last week warned of lower shipments and weaker screen prices after posting its first loss in seven quarters, as it battles weak demand from television makers. [ID:nTOE70I05E]

AU shares have fallen about 5 percent this month, versus a nearly flat Taiwan market .TWII. ($1=29.05 Taiwan Dollar) (Reporting by Clare Jim and Argin Chang; Editing by Dhara Ranasinghe)