Foxconn falls short of analysts' forecasts as demand looks set to soften
Foxconn posts rise in Q3 profit, lagging estimates
Taiwan's Foxconn posted a weaker than expected rise in quarterly profit amid warning signs from key customer Apple and its global suppliers that demand for iPhones could be softening. Foxconn, formally known as Hon Hai Precision Industry, reported net profit of T$24.88bn ($806m)for the third quarter on Tuesday, 12% short of analysts expectations. While this was its biggest quarterly profit so far in 2018 and 18% above the year-earlier results, it was below a mean estimate of T$28.26bn from nine analysts, according to I/B/E/S data from Refinitiv. “Compared (with) the previous quarter’s profit growth, the main reason for the results was entry into the peak season, increase in shipment scale, and rise in production efficiency and yield,” a company official told reporters. “Costs controls were good, the ratio of operating expenses was smaller, which led to a profit increase performance,” the official said. Apple warned earlier in November that holiday sales would miss Wall Street expect...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.