Hon Hai reports record Q2 profit

Taipei, Aug. 10 (CNA) Hon Hai Precision Industry Co., the world's largest contract electronics maker, has reported record second quarter profit, helped by the strong performance of its cloud/networking and computing operations.

The company, known better as Foxconn globally, had net profit of NT$33.29 billion (US$1.11 billion) in the April-June period, up 12 percent from a year earlier and up 13 percent from a quarter earlier, it said in a statement issued Wednesday before an investor conference.

Also, earnings per share totaled NT$2.4 in the second quarter, compared with NT$2.15 in the same quarter in 2021 and NT$2.12 in the first quarter of 2022.

Hon Hai had consolidated sales of NT$1.51 trillion, up 12 percent from a year earlier and up 7 percent from a quarter earlier, helped by a more than 15 percent year-on-year rise in cloud/networking division sales and a 5-10 percent rise in computing division sales.

That sales growth exceeded the company's previous estimates, which had indicated that sales would stay little changed on year-on-year and quarter-on-quarter basis.

Hon Hai said its gross margin -- the difference between revenue and cost of goods sold -- rose 0.38 percentage points from a quarter and 0.37 percentage points from a year earlier to 6.4 percent.

Its net margin -- the difference between gross profit and total expenses, including interest payments and taxes -- hit 2.21 percent in the second quarter, compared with 2.09 percent in the first quarter earlier and 2.2 percent a year earlier.

In the first half of 2022, Hon Hai's net profit rose 8.3 percent from a year earlier to NT$62.7 billion, with EPS of NT$4.53, compared with NT$4.18 a year earlier, the company said.

The results were issued after the Taipei stock market closed for the day. The company's stock rose 0.92 percent to NT$110.00 in trading in Taipei on Wednesday.