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Hon Hai net income drops 57% in Q1

2012/04/29 12:31:34

Taipei, April 29 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics manufacturer, reported lower-than-expected results in the first three months of 2012 following a profit warning by one of its subsidiaries.

In a statement released Saturday, Hon Hai recorded unconsolidated sales of NT$789.94 billion (US$27 billion) and a net income of NT$14.92 billion, down 14.1 percent and 57.3 percent from the fourth quarter of last year, respectively.

Earnings per share were NT$1.40, much lower than the NT$3.18 in the previous quarter, said Hon Hai, which manufactures iPhones and iPads for Apple Inc.

Compared with the first quarter of 2011, the Taiwanese firm's sales increased 42.59 percent and net income grew 3.62 percent, according to the statement.

Among the upbeat institutional investors, Barclays Capital originally expected Hon Hai to report earnings per share of NT$1.93 for the first quarter, adding that it has been estimated that Hon Hai shipped about 33 million iPhones and some 9.5 million iPads to Apple during this period.

Further, earlier on Saturday, Hon Hai Chairman Terry Gou predicted that his company would report better performances throughout the year.

Citing Chinese government statistics, Gou said that his company's trading volume had reached nearly 6.7 percent of China's total exports and imports during the first three months of 2012, up from 5.8 percent for the same period one year ago.

However, Hon Hai closed down 4.52 percent at NT$99.30 Friday after one of its subsidiaries, Foxconn International Holdings, which assembles cellphones for well-known brands such as Nokia and Motorola, said its losses for the first half of this year are likely to expand compared to the same period last year.

(By Jeffrey Wu)
ENDITEM/Robert