June 13 (Bloomberg) -- AU Optronics Corp., the world's third-largest liquid-crystal display maker, forecast a profit for this quarter as panel prices rise, President H.B. Chen said.

The company also plans to double the manufacturing capacity at its newest LCD factory by the third quarter of next year, Chen said at the company's annual meeting for shareholders today in Hsinchu, Taiwan, where AU Optronics is based.

AU Optronics joins industry leader Samsung Electronics Co. in predicting a market recovery. Prices of LCD panels used in computer and television sets started to rise in April, helped by increased orders from TV and computer makers, according to estimates by research firm Witsview Technology Corp.

AU's so-called 7.5-generation factory, which produces TV screens measuring 40 inches and above, can currently process 40,000 sheets of glass a month, Chen said. The factory's monthly capacity will climb to 80,000 by the third quarter of next year after reaching 60,000 in this year's third quarter, he said.

The company, which reported a NT$5.11 billion ($154.7 million) net loss in the first quarter, will probably post a net income of NT$1.01 billion in the quarter ending June 30, according to the average of 12 analyst estimates compiled by Bloomberg.

Shares of AU Optronics rose as much as 1.8 percent to NT$56.20 and traded at NT$55.30 at 1:30 p.m. in Taipei, compared with a 0.2 percent decline on the Taiex index.

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

Last Updated: June 13, 2007 01:32 EDT