Hon Hai reports highest-ever sales for July

08/05/2022 06:46 PM
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Hon Hai
Hon Hai's headquarters in New Taipei. CNA file photo

Taipei, Aug. 5 (CNA) Taiwan-based Hon Hai Precision Industry Co. reported a record NT$475.099 billion (US$15.84 billion) in consolidated sales for July on Thursday, driven by solid demand for cloud and networking devices.

In a statement, iPhone assembler Hon Hai, also known as Foxconn globally, said that the 13.66 percent year-over-year increase in July revenue was higher than it had previously estimated but did not disclose its forecast.

However, consolidated sales in July fell 9.71 percent compared with June, with Hon Hai attributing production transition in the smart consumer electronics markets and a subsequent decline in shipments to the month-on-month decline.

Hon Hai's consolidated sales for the first seven months of 2022 stood at NT$3.39 trillion, up 8.83 percent from a year earlier.

Compared with the same period of last year, Hon Hai said that its cloud and networking division saw sales grow at a double-digit pace, while its electronics component and smart consumer electronics operations also recorded growth.

Despite consumer electronics and smart product divisions suffering a month-over-month drop in sales, demand for servers and computing devices made by the company remained strong, Hon Hai said.

Hon Hai said that strong global demand for servers and computing devices in the first seven months of 2022 pushed up sales, while its efforts in supply chain management also helped the company generate more revenue.

Hon Hai added its electronics component division benefited from strong global demand for smart consumer products during the seven-month period.

Outlook

Looking ahead, Hon Hai said it remained cautious about market demand at a time when growing inflation was taking a toll on the global economy, while the ongoing COVID-19 pandemic is expected to continue to affect the global supply chain.

However, Hon Hai said that based on current orders, the company was likely to post an increase in sales in the third quarter compared with the same period last year, when revenue hit a new quarterly high of approximately NT$1.4 trillion in the wake of the launch of the iPhone 13, up 8.8 percent from a year earlier.

Market analysts have suggested that as Apple Inc. will unveil the next generation iPhones in September, Hon Hai is expected to ride the waves of strong demand for smartphones in the third quarter of this year.

Hon Hai is scheduled to hold an investor conference on Aug. 10 to detail its second quarter results and give guidance for the third quarter.

In the second quarter, Hon Hai generated NT$1.51 trillion in consolidated sales, up 11.3 percent from a year earlier and up 7.26 percent from a quarter earlier.

(By Chung Jung-feng and Frances Huang)

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