Hon Hai Precision Industry Co (
Net income increased to NT$5.7 billion (US$171.2 million), or NT$2.18 per share, from NT$4.8 billion, or NT$1.92, a year earlier, the company said in a statement to the Taiwan Stock Exchange. Sales, posted earlier, rose 30 percent to NT$78.4 billion.
Hon Hai this year may overtake Singapore-based Flextronics International Ltd as the world's leading maker of electronics for other companies after buying Ambit Microsystems Corp (
"The fundamentals are still good," said Eddie Chiu, a fund manager at First Global Investment Trust Co. "The short-term sentiment is a bit weak."
The company has overtaken rivals such as Milpitas, California-based Solectron to become the world's second-largest maker of electronics for other companies by keeping production costs low, according to Wee.
In November, Hon Hai agreed to buy Ambit for NT$36.7 billion in stock. The contribution of Taiwan-based Ambit will help Hon Hai increase sales this year by more than a fifth to exceed NT$400 billion, said Paul Tsai, a fund manager at International Investment Trust in Taipei.
Ambit makes parts for telecommunications equipment and orders from mobile-phone and network-gear makers will boost Hon Hai's growth, Tsai said earlier.
Hon Hai in August agreed to buy Finnish cellphone-cover maker Eimo Oyj for 67 million euros (US$80 million) in cash.
The purchase will help Hon Hai win business from Finland's Nokia Oyj, the world's largest handset maker, according to Ellen Tseng, an analyst with Morgan Stanley & Co in Taipei.
The company has been shifting from computers to telecommunications to help maintain sales growth, Tsai said earlier.
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