Thu, Aug 11, 2011 - Page 11 News List

Hon Hai posts its highest revenues since December

By Kevin Chen  /  Staff Reporter

Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract manufacturer of electronics, yesterday reported the highest revenue of the year last month as the company increased production of consumer electronics items to meet growing demand.

The Taiwanese maker of Sony TVs, HP printers and Apple iPhones and iPads said in a statement its unconsolidated revenue last month increased 16.97 percent year-on-year and 4.59 percent month-on-month to NT$229.45 billion (US$7.92 billion).

Last month’s figure was the highest since December, when Hon Hai posted NT$244.68 billion in monthly revenue, according to the company’s financial data.

Ahead of yesterday’s sales figures, analysts had already forecast that Hon Hai’s revenue would continue increasing amid still-strong global demand for consumer electronics, with a steady recovery in its profit margin during the second half.

“We continue to highlight that Hon Hai’s cost structure will continue to improve as margin risk factors are diminishing,” Macquarie Research analyst Daniel Chang (張博淇) said in a note on Aug 3.

In the first seven months, Hon Hai saw its unaudited revenue expand 25.93 percent year-on-year to NT$1.42 trillion, data showed.

Separately, Compal Electronics Inc (仁寶電腦), the world’s No. 2 contract maker of notebooks, yesterday posted NT$55.9 billion in revenue for last month, down 6 percent from July last year.

The company said that cumulative revenue in the first seven months totaled NT$389.1 billion, down 22 percent from the same period last year.

ADDITIONAL REPORTING BY JASON TAN

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