Hon Hai Q2 sales bounce back to top NT$1 trillion

07/07/2020 02:56 PM
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Taipei, July 7 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. saw its second-quarter sales rebound to surpass NT$1 trillion (US$33.90 billion) due to solid demand for computers and cloud-based and Internet communications devices.

In a statement released Monday, Hon Hai said it posted consolidated sales of about NT$1.13 trillion in the quarter, up 21.45 percent from a quarter earlier.

It was also the second highest sales figure for a second quarter in the company's history, trailing only the NT$1.16 trillion in sales in the April-June quarter in 2019, according to the statement.

Hon Hai, known internationally as Foxconn, said its computer division enjoyed the biggest growth in shipments in the quarter from a quarter earlier, ahead of the cloud-based device division.

In June alone, the iPhone assembler had consolidated sales of NT$360.53 billion, down 6.83 percent from a month earlier and also down 9.08 percent from a year earlier.

In the first six months of the year, Hon Hai had consolidated sales of NT$2.06 trillion, down 7.16 percent from a year earlier.

Looking ahead, analysts said, Hon Hai is expected to continue to benefit from strong demand for servers and Internet communications devices as people continue to work and learn online amid the COVID-19 pandemic.

Analysts said an increase in shipments in servers and Internet communications devices could boost Hon Hai's gross margin -- the difference between revenue and cost of goods sold.

According to a market estimate, servers and Internet communications devices could account for 35 percent of Hon Hai's total sales in 2021, up from the current 30 percent.

(By Chang Chien-chung and Frances Huang)

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