Fri, May 12, 2017 - Page 11 News List

Hon Hai profit grows, despite NT dollar woes

By Lauly Li  /  Staff reporter

Hon Hai Precision Industry Co (鴻海精密), one of Apple Inc’s iPhone assemblers, yesterday posted net profit of NT$28.16 billion (US$931.99 million) for last quarter, up 2.14 percent from NT$27.57 billion the previous year.

The result marked the iPhone assembler’s second-highest performance for the first quarter in the company’s history, but it represented a contraction of 59.04 percent from the previous quarter’s NT$68.76 billion due to the onset of traditional slow season for its product lines, Hon Hai said.

Gross margin improved by 0.3 percentage points to 7.35 percent last quarter from a year earlier and operating margin also grew 0.05 percentage points to 3.74 percent, supported by continued efforts to raise productivity and operational efficiency, the firm said.

Non-operational losses were NT$51 million last quarter, partly foreign-exchange losses, a Hon Hai investor relations official said, declining to disclose the losses as the finalized financial statement has not yet been submitted to the Taiwan Stock Exchange.

Hon Hai’s board approved a cash dividend of NT$4.5 per common share, based on last year’s earnings of NT$148.66 billion, or earnings per share of NT$8.6.

It will mark the first time the firm has not distributed a stock dividend to shareholders since the company listed in 1991.

“The company decided to only distribute a cash dividend this year, as the firm has a relatively high level of cash and cash equivalents of nearly NT$600 billion,” the official said by telephone, adding that the decision is part of the firm’s management of capital.

The proposed dividend represents a payout ratio of 52.32 percent, higher than the cash payout ratio of 42.5 percent last year, and a yield of 4.32 percent based on the company’s closing price of NT$104 in Taipei trading yesterday.

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