Hon Hai revenues beat forecasts to hit five-month high

By Lisa Wang  /  Staff reporter

Thu, Jul 11, 2013 - Page 13

Hon Hai Precision Industry Co Ltd (鴻海精密), a major manufacturer of Apple Inc’s iPhones and iPads, yesterday posted its strongest monthly revenue in five months.

Revenue for last month grew 1.39 percent to NT$304.64 billion (US$10.1 billion), from May’s NT$300.47 billion.

That brought the company’s revenue for last quarter to NT$896,87 billion, up 10.87 percent from the first quarter’s NT$808.97 billion.

The firm’s quarterly growth exceeded many analysts’ forecasts.

Credit Suisse analyst Thompson Wu (武光明) had estimated Hon Hai’s revenue would grow 3.5 percent sequentially in the April-to-June period, while Fubon Securities Co (富邦證券) analyst Arthur Liao (廖顯毅) forecast a nearly 4 percent quarterly decline in revenue for the same period.

In the first six months, Hon Hai accumulated NT$1.71 trillion in revenue, down 9.9 percent from NT$1.89 trillion for the same period last year.

Hon Hai chairman Terry Gou (郭台銘) said last month that achieving a “15 percent [annual growth in revenue] is a very challenging target, but we will keep the target unchanged.”

Wu said he expects Hon Hai’s revenue to slide 3.84 percent to NT$3.76 trillion this year from last year’s NT$3.91 trillion. UBS analyst Michael Lim projected Hon Hai’s revenue would contract 3.5 percent annually this year.

Shares of Hon Hai climbed 1.88 percent to NT$75.9 yesterday, outperforming the TAIEX, which gained 0.51 percent.