Wed, Jan 11, 2012 - Page 11 News List

Hon Hai’s revenues hit record for third month

CAUTIOUS:Although the company has been breaking sales records, the chairman said it would aggressively reduce costs to cope with the weak global economy

By Kevin Chen  /  Staff Reporter, with CNA

Hon Hai Precision Industry Co (鴻海精密), which makes Sony TVs, HP printers and Apple’s iPhones and iPads, yesterday said unconsolidated revenues hit a record-high NT$316.94 billion (US$10.55 billion) last month, up 29.53 percent from a year earlier.

As the company’s unconsolidated sales hit a record for the third consecutive month last month, the accumulated revenue in the fourth quarter of last year totaled NT$919.68 billion, also a record, according to a statement issued by the Taipei-based company after the closure of the local stock market.

For the whole of last year, Hon Hai’s unconsolidated revenues totaled NT$2.77 trillion, also a record high and up 19.89 percent year-on-year, the statement said.

Hon Hai shares rose 2.49 percent to NT$86.4 yesterday on the Taiwan Stock Exchange.

The company’s stock has increased 1.69 percent so far this year, compared with a 0.3 percent rise on the benchmark TAIEX. The shares fell 29.45 percent last year, versus the TAIEX’s 21.18 percent decline, stock exchange data showed.

Early last month, Hon Hai chairman Terry Gou (郭台銘) said the company was set to achieve at least a 15 percent annual increase in revenues this year, citing rising demand for its electronics products in emerging markets like China and Brazil.

On Monday, Gou said at a forum with students from National Taiwan University that it was “very difficult” for Taiwanese companies to cut ties with China.

He said Chinese talent and the Chinese market were “indispensable resources” for companies competing at the international level, adding that his company was also looking to invest in Brazil and is assessing possibilities in Indonesia.

However, Gou also said that the company would aggressively reduce costs by disposing of idle assets, in an effort to cope with the weak global economy and ongoing eurozone debt problem.

He said the current economic crisis was something “he has never seen before” and the global conditions “are different from anything I have seen since going into business in 1974.”

As a result, he said the company had actively dealt with idle assets, equipment and factories over the past several months and stopped purchasing materials or goods that were not being used or sold within two days.

“There are too many uncertainties in the years after 2012, but one thing is certain, and that is recession,” Gou said.

“We are placing our foot on the brakes instead of the accelerator, even though we are also ready to hit the throttle at any time,” he added.

Gou said the company had no plans to cut jobs or ask employees to take unpaid leave.

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