Hon Hai Precision Industry Co (鴻海精密) yesterday reported that revenue last month edged down 0.43 percent month-on-month to NT$400.29 billion (US$13.14 billion), the lowest since August 2021’s NT$400.05 billion.
On an annual basis, revenue dropped 21.11 percent, the company, also known as Foxconn Technology Group (富士康科技集團) globally, said in a statement.
However, it was the third-best March performance in the firm’s history, the iPhone assembler said.
Photo courtesy of Hon Hai Precision Industry Co
March last year was the highest for the same period, with NT$507.39 billion in revenue, followed by NT$441.22 billion in March 2021, it said.
Hon Hai said its consolidated revenue in the first three months of the year rose 3.87 percent to NT$1.46 trillion, a record for the first quarter, but was down 25.26 percent from the previous quarter.
That is higher than Fubon Securities Investment Services Co’s (富邦投顧) estimates of a 2 percent annual increase to NT$1.43 trillion and met the firm’s guidance on March 15, when it said first-quarter revenue would receive a boost from the production ramp-up at its Zhengzhou facilities in China.
The world’s biggest contract electronics maker attributed the first-quarter increase to a sharp improvement in its consumer electronics segment, as its production lines in Zhengzhou — Apple Inc’s key manufacturing hub in China — had returned to normal in January, following disruptions from a COVID-19 outbreak late last year.
That helped offset a relatively flat performance in its cloud and networking technology segment, as well as lower sales of computing products and components due to weak PC market demand and slowing pull-in orders from customers, Hon Hai said.
However, the firm is cautious about the outlook for the second quarter, saying that revenue would decrease annually and quarterly as the industry undergoes a product transition and because of a relatively high comparison base last year.
While the contribution from its electric vehicle business remains low, Hon Hai yesterday announced the start of production of the electric Monarch MK-V tractors at its Ohio factory, with the initial five tractors rolling off the production line for delivery to customers.
The MK-V is a fully electric, driver-optional, smart tractor that combines electrification, automation and data analysis to help farmers reduce their carbon footprint, while increasing their profitability, the company said in a separate statement.
Separately, smartphone camera lens maker Largan Precision Co (大立光) yesterday reported that consolidated revenue last month rose 28.98 percent month-on-month, but fell 11.91 percent year-on-year to NT$3.31 billion.
The figure is largely in line with the company’s guidance and brings its first-quarter revenue to NT$9.14 billion, down 9.84 percent from a year earlier. It was also higher than the NT$8.72 billion forecast by Capital Investment Management Corp (群益投顧).
Largan, a technological leader in the handset camera lens industry, said in a statement that high-margin 20-megapixel or more lenses for smartphone cameras accounted for 20 to 30 percent of its total sales last month.
The majority, or 60 to 70 percent, came from sales of 10-megapixel lenses, while 8-megapixel lenses contributed less than 10 percent, it said.
With consumer demand for smartphones remaining weak, inventory adjustments in the handset supply chain continuing and the Chinese economy still sluggish, Largan said sales this month would be lower than last month.
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