Hon Hai net profit hits new high in 2024

Taipei, March 14 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co.'s net profit in 2024 was the highest in company history, it said Friday.

In a statement, Hon Hai, which counts assembling iPhones and rolling out AI servers among its main businesses, said its net profit in 2024 was NT$152.71 billion (US$4.63 billion), up 7 percent from NT$142.10 billion in 2023.

Earnings per share rose to NT$11.01 in 2024 from NT$10.25 a year earlier, and consolidated sales rose to a record high of NT$6.86 trillion, up 11 percent from the previous year, the company said.

According to Hon Hai, better known internationally as Foxconn, smart consumer electronics accounted for 46 percent of its total sales in 2024, while its cloud and networking products accounted for 30 percent, computing 18 percent and electronic components 6 percent.

Its gross margin -- the difference between revenue and cost of goods sold -- was 6.25 percent in 2024, down slightly from 6.30 percent a year earlier.

But its operating margin -- the difference between sales and its cost of goods sold and operating expenses -- grew to 2.92 percent in 2024 from 2.70 percent a year earlier, Hon Hai said.

In the fourth quarter alone, Hon Hai posted a net profit of NT$46.33 billion, down 6 percent from a year earlier, with EPS at NT$3.34, compared with NT$3.35 percent in the third quarter and NT$3.83 a year earlier.

Its gross margin for the fourth quarter hit 6.15 percent, while its operating margin stood at 3.03 percent.

In an investor conference held in November, Hon Hai said its cloud and networking business would grow significantly from a year earlier in 2024 riding the waves of the current global AI boom.