Apple supplier Foxconn posts record quarterly profit

Apple supplier Foxconn posts record quarterly profit

PanARMENIAN.Net - Hon Hai Precision Industry Co., the world’s largest contract manufacturer of electronics better known as Foxconn, posted record quarterly profit after it boosted production efficiency and output of Apple Inc. iPhones and iPads, Bloomberg reported.

Fourth-quarter net income climbed 5.6 percent to NT$37 billion ($1.2 billion), according to data compiled by Bloomberg based on full-year results. That’s ahead of the NT$35.9 billion average of 14 analyst estimates compiled by Bloomberg.

Hon Hai solved production problems that had crimped output of the iPhone 5 in the prior quarter, helping it raise revenue and margins. The Taipei-listed flagship of Terry Gou’s Foxconn Technology Group may face a drop in sales and profit this quarter as demand for the iPhone wanes amid growing competition from Samsung Electronics Co.

Consolidated revenue for the quarter climbed 6 percent to NT$1.14 trillion, compared with the NT$1.13 trillion average of 15 analyst estimates compiled by Bloomberg.

Full-year 2012 net income climbed 16 percent to NT$94.8 billion from NT$81.6 billion, the Taipei-based company said in an exchange statement. Revenue climbed 13 percent to a record NT$3.9 trillion, compared with Gou’s long-term target for 15 percent annual revenue growth.

Operating profit climbed to a record NT$41.7 billion in the quarter, with operating margin of 3.67 percent the widest in three years, according to data compiled by Bloomberg.

Apple sold a record 47.8 million iPhones during the period while the introduction of a new iPad and its iPad Mini helped that category to also post historic highs. Still, Apple’s outlook for its fiscal second-quarter, which ends this month, was below estimates as Asian rivals including Samsung, ZTE Corp. and Huawei Technologies Co. won sales.

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