Wed, Jul 11, 2018 - Page 12 News List

Hon Hai posts best June revenue on robust demand

GROWTH ENGINE:The gains were primarily driven by the firm’s consumer electronics business, which grew the fastest, followed by communications and computing segments

By Ted Chen  /  Staff reporter

Hon Hai Precision Industry Co (鴻海精密), a major assembler of Apple Inc’s iPhones, yesterday reported its highest June revenue ever, driven by demand for consumer electronics, and posted faster sequential growth than its smaller domestic peers.

Revenue rose 12.33 percent monthly and 23.72 percent annually to NT$389.89 billion (US$12.82 billion), the highest level for the month of June, the company said.

Revenue last quarter rose 5.1 percent from NT$1.03 trillion in the January-to-March quarter to NT$1.81 trillion, also a record for the company, a filing with the Taiwan Stock exchange showed.

That brought total revenue in the first half of this year to NT$2.11 trillion, up 11.31 percent from NT$1.89 trillion a year earlier.

The gains last month were primarily driven by Hon Hai’s consumer electronics business, which grew the fastest, followed by communications and computing, the company said.

In June last year, computing was the company’s No. 2 growth driver, while communications was No. 3, the company added.

Hon Hai, which has held the lion’s share at Apple’s smartphone supply contracts, appears to be unaffected by a lull ahead of the launch of new iPhones in September.

The company has received increasing orders from Chinese Android smartphone makers, including Huawei Technologies Co (華為) and Xiaomi Corp (小米), and it has been ramping up orders for its bid to revive the Nokia smartphone brand following an acquisition in 2016, analysts have said.

The company’s bottom line is expected to benefit from a strong US dollar, which should help offset labor costs at its manufacturing bases in China, which are paid in yuan.

The company refused to provide details on its assessment of foreign-exchange effects.

Meanwhile, Pegatron Corp (和碩), the second-biggest assembler of iPhones, reported that revenue last month fell 16.5 percent monthly and 5.2 percent annually to NT$75.89 billion, its worst monthly showing this year.

Revenue during the April-to-June quarter reached NT$271.2 billion, down 3.45 percent from a quarter earlier, but up 12.82 percent from the same period last year, the company said, attributing the decline to clients’ product cycles.

Quanta Computer Inc (廣達), an assembler of Apple laptops and smartwatches, said that revenue last month fell 10 percent monthly and 28.4 percent annually to NT$65.75 billion, and revenue in the first half dipped 7.3 percent annually to NT$429.15 billion.

Wistron Corp (緯創), which has been dropped from Apple’s list of smartphone assemblers, posted revenue of NT$67.02 billion for last month, up 3.8 percent from the previous month, but down 4 percent from a year earlier.

Revenue in the first half rose 12.34 percent annually to NT$406.4 billion, driven by rising shipments of servers and desktop PCs, the company said.

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