Hon Hai Precision Industry Co (鴻海精密), which manufactures iPhones and iPads for Apple Inc, yesterday posted 83 percent quarterly growth in net income for the fourth quarter as its gross margin improved 1.84 percentage points to 8.89 percent.
A year ago, the firm’s fourth-quarter gross margin was 7.05 percent.
Net income on a consolidated basis expanded to NT$35.03 billion (US$1.18 billion) last quarter, compared with NT$19.18 billion in the third quarter of last year, according to an e-mailed statement.
Non-operating income, mostly from its subsidiaries, such as Hong Kong-listed handset maker Foxconn International Holdings Ltd (富士康控股), grew 53 percent to NT$9.12 billion last quarter, up from NT$5.95 billion in the third quarter.
Last year, Hon Hai posted accumulated net income of NT$81.59 billion, up 5.76 percent from NT$77.15 billion in 2010. Revenues grew 15 percent to NT$3.45 trillion last year, up from NT$3 trillion in 2010.
SUBSCRIPTION PLAN
Separately, Hon Hai said the company’s board yesterday approved a share subscription plan by subsidiary Chimei Innolux Corp (奇美電子) which would raise a total of NT$1.94 billion during the three years unitl 2014.
Hon Hai and its investment arm, Hyield Venture Capital Co (鴻揚創投), will purchase the new Chimei shares, according to a filing to the Taiwan Stock Exchange.
HELPING CHIMEI
The board’s approval will help Chimei obtain a much-needed rollover for NT$200 billion in syndicated loans as creditor banks had requested.
Hon Hai and Hyield Venture hold a combined 3.87 percent stake in Chimei Innolux, the nation’s largest LCD panel maker.
In a separate filing, the company said the board also approved fund-raising proposals to offer as many as 1 billion common shares in the form of global depositary receipts and to issue up to NT$18 billion in corporate bonds.
The company plans to use the proceedings to replenish its operating capital and repay short-term debts.
The Chimei Innolux investments and fund-raising projects will be put to discussion during the company’s annual general shareholders’ meeting scheduled for June 18.
Hon Hai’s share price ended the day 1.89 percent higher at NT$108.00, while Chimei Innolux’s stock price was unchanged at NT$13.6.
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