Foxconn Q2 sales slip 14%, Q3 outlook brighter ahead of year-end peak

Taiwan’s Foxconn, a serious iPhone assembler for Apple Inc, stated on Wednesday that second quarter income dropped 13.8% year-on-year however the outlook for the third quarter was brighter forward of peak procuring season on the finish of the 12 months.

Foxconn, formally referred to as Hon Hai Precision Industry Co Ltd and the world’s largest contract electronics maker, stated income within the April-June interval reached T$1.3 trillion ($41.76 billion), in step with its expectations.

For sensible shopper electronics merchandise, which embody smartphones and are the corporate’s foremost business driver, income within the second quarter dropped, coming off a better base within the 12 months in the past interval, it stated in a press release with out giving particulars.

For the month of June, gross sales fell 19.7% year-on-year, although at T$422.8 billion it was nonetheless the second highest determine on file for a similar interval.

“With the second half of the year peak season currently underway, operations will gradually ramp up,” the corporate stated.

“The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on quarter pace higher than seen in the previous two years,” it stated.

“When compared to the pre-pandemic period, the growth rate is expected to be approximately on par.” The first half of the 12 months is historically slower for Taiwan tech producers as main electronics distributors together with Apple launch new merchandise close to the year-end vacation season.

Foxconn experiences its second quarter earnings on Aug. 14.

Foxconn posted a 56% plunge in first-quarter internet revenue, lagging forecasts in its largest quarterly fall in three years. It took a $565 million write-off linked to its 34% stake in Japanese electronics maker Sharp Corp.Foxconn shares have risen 8.6% this 12 months, lagging the broader Taiwan market, which is up 20.1%. They closed down 1.4% on Wednesday, in contrast with a 0.5% drop for the broader market.

($1 = 31.1290 Taiwan {dollars})

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