Parent of Taiwan's Foxconn reports profit drop

Oct 31, 2011

The parent of Taiwan technology giant Foxconn, which makes iPads and iPhones for Apple, said Monday its third-quarter profit dropped, with analysts pointing to the cost of moving factories in China.

Hon Hai Precision said it earned Tw$19.18 billion ($640 million) between July and September, about nine percent lower than in 2010.

"The costs from shifting production facilities from in China to the inner part of the mainland peaked in the second quarter and since then have gradually fallen," said Edison Lee of Grand Cathay Securities in Taipei.

"Profits will gradually return to (their) normal track after the third quarter."

Despite the year-on-year drop, Hon Hai's third-quarter profit marked a 47.7 percent increase over the second quarter.

In the nine months to September, net profits came in at Tw$46.56 billion, down 16.4 percent from Tw$55.7 billion a year ago, Hon Hai said.

The company's Foxconn unit started moving some of its production to central China last year in a bid to cut costs and scale back its massive industrial campus in the southern boomtown of Shenzhen, which has been plagued by a series of employee suicides in recent years.

is the world's largest maker of computer components and produces goods for tech giants including Apple, Sony and Nokia. It currently employs around one million workers in China, about half of them based in .

Explore further: Yahoo profit surges on Alibaba divestment, mobile

add to favorites email to friend print save as pdf

Related Stories

Taiwan's Hon Hai 2Q profit down 23%

Aug 31, 2011

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.

Taiwan's Hon Hai looks to robot industry

Oct 31, 2011

The parent company of Taiwanese tech giant Foxconn plans to mass produce industrial robots as part of its efforts to cope with labour shortages and rising wages.

Parent of Taiwan's Foxconn enters solar power

Jan 26, 2011

The parent of Taiwanese IT giant Foxconn will pay over $130 million to become the major shareholder in a solar cell company as part of a plan to expand into renewable energy, officials said Wednesday.

Foxconn to hike prices to cover China pay increase

Jul 22, 2010

(AP) -- Foxconn Technology Group, which makes iPhones and other gadgets for global technology companies, plans to charge them more to partly cover wage increases at its mammoth manufacturing compound in southern China.

Recommended for you

Turner channels removed from Dish amid pact spat

10 hours ago

Channels such as Cartoon Network and CNN are no longer part of Dish's programming lineup as a deadline has passed for the satellite TV provider and Turner Broadcasting to renew their distribution agreement.

Verizon reports higher 3Q net income, revenue

11 hours ago

Verizon Communications Inc. on Tuesday reported higher net income and revenue in its third quarter, helped by strong wireless subscriber growth and demand for its high-speed FiOS Internet services.

Amazon, Simon & Schuster sign book retail deal

20 hours ago

Amazon has reached a deal with American book publisher Simon & Schuster, the companies said, though the e-commerce giant remains at loggerheads with France's Hachette over e-book pricing.

User comments : 0