Foxconn Technology Group’s 2013 profit up to $1.4B

Nathan Andrada – Fourth Estate Cooperative Contributor

Taipei, Taiwan (4E) – Hon Hai Precision Industry Co. reported a 13 percent rise in profit last year, boosted by a rise in iPad and iPhone sales, according to the company’s full-year data filed with the Taiwan Stock Exchange on Friday.

Fourth-quarter net income climbed to 42.6bn NT dollars ($1.4bn), said the largest assembler of Apple Inc. products. The figure compares with the average estimate of 41.9bn NT dollars forecast by 13 analysts surveyed by Bloomberg News. In 2013, profit improved to $106.7bn NT dollars.

The company, commonly known as Foxconn Technology Group, also said it invested around $90mn for manufacturing and software development in mainland China, as well as two fundraising ventures, as it prepares for intensifying competition and a possible easing in sales.

The quarter’s record revenue and profit is a contrast to the weak overall performance in the year for the world’s largest contract manufacturer for electronics, which has more than 1.3 million employees worldwide.

Slowing smartphone growth, a declining shrinking PC market, and tougher competition for its major clients resulted to the company’s slowest sales growth since the global financial crisis. Last year, sales increased by just 1 percent.

Friday’s report showed that operating income in the fourth quarter improved to 45bn NT dollars, from 41.7bn a year ago. Ten analysts’ average forecast for that figure was 45.5bn NT dollars.

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