Mon, Nov 11, 2013 - Page 14 News List

Hon Hai reports revenue increase

By Kevin Chen  /  Staff reporter

Hon Hai Precision Industry Co (鴻海), which assembles Apple Inc’s iPads and iPhones, said on Friday its consolidated revenue hit a record level last month as the company was gearing up to assemble new versions of its products for Apple.

The company released its sales data after the local stock market closed, saying in a statement that its revenue increased 13.24 percent to NT$382.62 billion (US$12.97 billion) last month from NT$337.86 billion in September.

Compared with NT$338.16 billion in October last year, sales were up 13.15 percent, according to Hon Hai, which also manufactures TVs for Sony Corp and printers for Hewlett-Packard Co.

As worldwide demand for tech products has been generally weaker this year than last year, Hon Hai’s cumulative revenue in the first 10 months of this year was down 3.18 percent to NT$3.7 trillion, according to the statement.

Analysts said Hon Hai could still see revenue increase further this month and next month on the back of seasonal demand for Apple’s new products.

However, there is concern about its revenue growth momentum next quarter, they said, regarding the sustainability of Apple’s product sales and the US firm’s plans to add new suppliers, including Compal Electronics Inc (仁寶), Wistron Corp (緯創) and Inventec Corp (英業達), to reduce risks for new products.

On Friday, Inventec said the high comparison base in September and seasonally slow demand this quarter pushed its revenue down by 5.39 percent to NT$44.98 billion last month from the NT$47.54 billion the previous month.

Inventec this year snatched Hewlett-Packard Co’s and Toshiba Corp’s consumer model orders from its local peers Quanta Computer Inc (廣達) and Wistron Corp (緯創).

However, a less stable demand for consumer models forced the company’s notebook shipments to decline 19.15 percent to 1.9 million units last month from 2.35 million units in September.

Inventec also makes servers used by Lenovo Group (聯想), assembles smartphones for China’s Xiaomi Corp (小米) through its handset subsidiary and produces solar panels from another solar subsidiary.

Overall, the company’s consolidated revenue in the first 10 months of the year rose 10.66 percent year-on-year to NT$371.44 billion, the company reported in a filing to the Taiwan Stock Exchange.

Yuanta analyst Calvin Wei (魏建發) forecast Inventec’s fourth-quarter revenue to decline by more than 10 percent sequentially given a high comparison base last quarter.

The company is also expected to see its earnings affected by higher foreign exchange losses considering the strengthening NT dollar in the second half of the year, Wei said in a client note on Friday.

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