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Apple supplier Foxconn's fourth-quarter profit slips, lags view

Apple supplier Foxconn's fourth-quarter profit slips, lags view

The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's building in Taipei, Taiwan March 30, 2018. REUTERS/Tyrone Siu/Files

TAIPEI - Foxconn, the world's largest contract electronics maker, posted on Tuesday a lower fourth-quarter profit that lagged expectations despite strong iPhone 12 sales and pandemic-led demand for telecommuting devices.

The Taiwanese firm, which counts technology giants such as Apple Inc among its major clients, booked a October-December net profit of TUS$45.97 billion (US$1.61 billion).

That represented a 4per cent decline from a year earlier, according to a company statement, and compared with the TUS$50.89 billion average of 11 analyst estimates compiled by Refinitiv.

Formally called Hon Hai Precision Industry Co Ltd, Foxconn's fourth-quarter revenue rose 15per cent on the year.

That was mainly driven by a more than 15per cent revenue increase on the year from consumer electronics including smartphones, which accounted for 63per cent of its business in the quarter, Foxconn said without elaborating.

The company had previously forecast fourth-quarter revenue to be in a range of a decline of 3per cent and gain of 3per cent from a year earlier.

Foxconn had also said it expected revenue to grow about 10per cent in 2021 thanks to "stronger than expected" sales for smartphones, including the new iPhone 12, as well as telecommuting devices amid a coronavirus-induced work-from-home trend.

Shares of Foxconn have climbed almost 41per cent this year. They ended up 0.78per cent on Tuesday, compared with a 0.48per cent rise in the broader market.

(Reporting by Yimou Lee and Ben Blanchard; Editing by Muralikumar Anantharaman and Gerry Doyle)

Source: Reuters

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