Taiwan's Hon Hai 2Q profit down 23%

Taiwan tech giant Hon Hai Precision, the world's biggest contract electronics maker, said Wednesday net profit fell 23 percent in the three months to June mainly due to a tax on retained earnings.

Hon Hai, which makes a wide range of products including Apple's iPad and iPhone and phones for Sony and Nokia -- said net profit in the second quarter fell to Tw$12.9 billion ($447.9 million), from Tw$16.75 billion a year earlier.

The figure marks a decline of 9.8 percent from the previous quarter when profit came in at Tw$14.4 billion.

However, revenues rose to Tw$785.9 billion, up from Tw$653.9 billion a year ago.

Net profit in the first half this year rose 1.8 percent from last year to 27.38 billion.

A tax on retained earnings means companies pay more if they decide not to distribute those earnings among shareholders.

(c) 2011 AFP