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-   -   Apple products help Hon Hai reach $1.2B in Q4 profit (http://forums.macnn.com/113/tech-news/499173/apple-products-help-hon-hai-reach/)

 
NewsPoster Mar 25, 2013 11:34 AM
Apple products help Hon Hai reach $1.2B in Q4 profit
Hon Hai Precision Industry, closely linked to parent brand Foxconn Technology Group, has posted a record NT$37 billion ($1.2 billion US) in net income for its fourth quarter, <em>Bloomberg</em> reports. The figure has also surpassed a NT$35.9 billion estimate averaged using predictions from 14 different analysts. <em>Bloomberg</em> <a href="http://macnn.com/rd/281809==http://www.bloomberg.com/news/2013-03-25/hon-hai-posts-record-profit-as-apple-expands-product-line.html?cmpid=yhoo" rel='nofollow'>credits</a> the profits to improved and greater production of the iPhone and iPad, including the introduction of new iPads and the resolution of scratched iPhone 5 casing problems, which prior to Q4 forced Hon Hai to temporarily halt work on the phone to impose quality control demanded by Apple.<br />
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Consolidated Q4 revenue reached NT$1.14 trillion, beating a NT$1.13 trillion average estimate. For the whole of 2012 Hon Hai's revenue was up 13 percent to $3.9 trillion, with net income up 16 percent to $94.8 billion. Foxconn chairman Terry Gou has been aiming at 15 percent annual revenue growth as a long-term goal.<br />
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In the same quarter as Apple reported a lower 38.6 gross margin, Hon Hai's margin went up from 8.89 percent to 9.58 percent year-over-year. This suggests that Foxconn may be charging Apple more to make devices, at least as a way of counteracting thin margins, and possibly to help pay for better labor and safety standards demanded by groups like the Fair Labor Association.<br />
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Two drags on Hon Hai's income are said to include Foxconn International Holdings, which makes phones for companies like Nokia and BlackBerry, and Innolux, a display panel maker. Still in the air is a Foxconn plan to buy a 9.9 percent stake in Sharp. The deal has yet to be completed a year after its announcement, owing to disagreements over price, management control, and corporate strategies.
 
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