Oct. 8 (Bloomberg) -- AU Optronics Corp. led shares of liquid-crystal display makers higher after reporting record monthly sales, fueling optimism that rising panel prices will boost industry earnings.

The world's third-largest maker of LCDs surged by its daily limit of 6.9 percent on Taiwan's stock exchange and closed at NT$60.40, the highest in more than three years. LG.Philips LCD Co., which reports earnings tomorrow, jumped 7.1 percent to close at 45,950 won in Seoul. Chi Mei Optoelectronics Corp. and Chunghwa Picture Tubes Ltd. also gained in Taipei.

AU's record sales come as LCD makers, which are taking market share from rival plasma and glass-tube display makers, prepare to disclose profits for the latest quarter. Prices of 17-inch LCD panels have jumped 35 percent since their low this year in March amid a shortage, according to data compiled by Taipei-based WitsView Technology Corp.

``The revenue number came in much better than I expected,'' said Robyn Hsu, who holds AU Optronics shares as part of the $152 million he helps manage at Truswell Securities Investment Trust Co. in Taipei. ``That suggests the panel prices are rising, and that is definitely good news for profitability.''

Hsu said he will consider buying more AU Optronics shares.

AU Optronics's September revenue almost doubled to NT$53.7 billion ($1.65 billion), the Hsinchu, Taiwan-based company said after markets closed on Oct. 5.

Profit Estimates

The Taipei-based Commercial Times newspaper reported on Sept. 12 that AU Optronics will post a profit of as much as NT$22 billion for the third quarter and more than NT$20 billion for the fourth quarter. AU Optronics reported NT$5.99 billion profit for the three months ended June.

LG.Philips, second only to Samsung Electronics Co. in LCD production, will probably report net income of 519 billion won ($567 million) in the three months ended Sept. 30, according to the median estimate of 10 analysts surveyed by Bloomberg. That would be the highest profit since the second quarter of 2004. LG's profit will probably rise next year because of a shortage of panels in 2008, according to Credit Suisse Group.

Sales of LCD televisions will probably surge 86 percent to 78 million units this year, while plasma televisions will increase 22 percent to 13 million units, according to estimates by James Kim, an analyst at Lehman Brothers Holdings Inc. Sales of bulkier glass-tube TVs will fall 18 percent, Kim said.

To contact the reporter on this story: Chinmei Sung in Taipei at csung4@bloomberg.net.

Last Updated: October 8, 2007 04:09 EDT