By Kosaku Narioka
Foxconn Technology Group reported a rise in third-quarter net profit thanks partly to an improvement in margins even as revenue from consumer electronics and cloud and networking equipment fell.
The Taiwan-based electronics maker, formally known as Hon Hai Precision Industry, said Tuesday that net profit rose 11% from a year earlier to 43.13 billion new Taiwan dollars (US$1.33 billion) for the three months ended Sept. 30. That beat the estimate of NT$34.89 billion taken in a poll of analysts by S&P Global Market Intelligence.
Third-quarter revenue decreased 12% from a year earlier to NT$1.543 trillion due to weaker demand for personal computers and cloud and networking products as well as a high base for consumer electronics products.
The electronics maker said its operating-profit margin improved to 2.99% in the third quarter from 2.37% in the previous quarter and 2.78% in the year-earlier period.
Foxconn, known for assembling Apple iPhones, said it expects its consumer-electronics business to perform better in the fourth quarter than in the third, though it would still likely do worse than in the fourth quarter of last year.
Foxconn has said revenue in October dropped 4.6% to NT$741.20 billion due to weaker demand for cloud and networking products as well as for personal computers.
Write to Kosaku Narioka at [email protected]
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