BREAKING NEWS

Apple supplier Foxconn's third-quarter profit up 23%, beats forecast

Apple supplier Foxconn's third-quarter profit up 23%, beats forecast
FILE PHOTO: A motorcyclist rides past the logo of Foxconn, the trading name of Hon Hai Precision Industry, in Taipei, Taiwan March 30, 2018. REUTERS/Tyrone Siu -
Copyright
TYRONE SIU(Reuters)
Text size Aa Aa

TAIPEI (Reuters) – Taiwan’s Foxconn <2317.TW> posted a 23% rise in quarterly profit on Wednesday, as its biggest customer Apple Inc <AAPL.O> reported better-than-expected earnings thanks to solid sales of mobile devices such as wearables.

Foxconn, the world’s largest contract electronics manufacturer, reported a net profit of T$30.7 billion (781.5 million pounds) for the July-September quarter, versus an average forecast of T$27.75 billion by 12 analysts compiled by Refinitiv.

The company did not elaborate on the profit rise from T$24.88 billion a year earlier.

The outlook for Foxconn has improved after Apple gave a positive forecast last month for the year-end holiday shopping quarter.

But the Taipei-based company also faces uncertainty as the protracted Sino-U.S. trade war could raise tariffs on iPhones sold in the U.S. market. Foxconn manufactures the bulk of Apple’s iPhones in China, and analysts estimate nearly half of its revenue comes from the U.S. firm.

More U.S. tariffs against China are set to take effect on Dec. 15, although officials from both sides said they have agreed to roll back tariffs on each others’ goods if a “phase one” trade deal can be negotiated.

Chairman Liu Young-way told an investor conference he sees slight yearly growth in 2020 in Foxconn’s consumer electronics and smart devices business, which includes smartphones and TVs, thanks to “a stabilizing global economic situation.” He did not elaborate.

Prior to the earnings announcement, shares in Foxconn, formally known as Hon Hai Precision Industry Co, closed down 1.4% on Wednesday, lagging the broader market <.TWII>.

Despite trade war concerns and generally sluggish global demand for electronics, the stock has gained nearly 27% so far this year.

(Reporting By Yimou Lee; Editing by Kim Coghill)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.
Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.