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Hon Hai says its income rose 18% in first quarter

Hon Hai Precision Industry Co (鴻海精密), the nation's biggest company by sales, said net income in the first quarter rose almost 18 percent as sales increased by half.

The maker of mobile phones, computers and video games for customers such as Dell Inc, Nokia Oyj and Sony Corp reported profit rose to NT$7.3 billion (US$230 million), or NT$2.26 a share, from NT$6.2 billion, or NT$1.93, a year earlier. Sales increased to NT$133.4 billion from NT$87.9 billion, and operating profit gained 53 percent to NT$4.6 billion, the company said in a statement to the Taiwan stock exchange last night. Hon Hai gave no explanation of its results.

The company expects to achieve 30 percent annual growth in sales during the next four years, founder and Chairman Terry Gou (郭台銘) said in an interview with CTI television in January, reaching NT$1 trillion by the time he retires in 2008.

He did gave no reason for the growth. Hon Hai has been gaining market share from Flextronics International Ltd, the world's leading maker of electronics for other companies, and other rivals. Its sales have more than quadrupled the past five years, while sales at Singapore-based Flextronics doubled.

Hon Hai will overtake Flextronics in 2005 in terms of sales, Roland Wee (李健仁), an analyst with ABN Amro in Taipei, predicted earlier this year.

Hon Hai said profit in 2004 increased 18 percent to NT$29.8 billion, or NT$9.21 a share, on a sales gain of 34 percent to NT$541.6 billion.
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