Hon Hai reports highest-ever Q3 net profit

Hon Hai Precision Industry Co., the world’s largest contract electronics maker, reported on Thursday its highest-ever third-quarter net profit on stronger-than-expected smart consumer electronics product shipments and cloud and networking device sales.

In a statement, iPhone assembler Hon Hai said it posted NT$38.76 billion (US$1.22 billion) in net profit for the July-September period, up 16 percent from a quarter earlier and also up 5 percent from a year earlier, with earnings per share at NT$2.80, compared with NT$2.40 in the second quarter and NT$2.67 percent over the same period of last year.

Market analysts said the strong performance in Hon Hai’s smart consumer electronics division reflected the launch of the latest iPhone 14 series by Apple Inc. in September.

Hon Hai, also known as Foxconn on the global markets, is believed to serve as the sole assembler of the flagship iPhone 14 Pro and the iPhone 14 Pro Max, which earned a warmer reception from customers than the lower-end iPhone 14 and iPhone 14 Plus models.

Hon Hai said smart consumer electronics products accounted for 52 percent of its total consolidated sales of NT$4.66 trillion in the third quarter, with cloud and networking products, computing devices, and electronics components making up 24 percent, 19 percent, and 5 percent, respectively.

Despite the higher bottom line, Hon Hai’s third-quarter gross margin — the difference between revenue and cost of goods sold — moved lower to 6.16 percent from 6.40 in the second quarter and from 6.30 percent a year earlier, while its operating margin — the difference between sales, the cost of goods sold, and operating expenses — also decreased by 0.16 percentage points from the second quarter to 2.78 percent but rose by 0.21 percentage points from a year earlier.

Hon Hai’s third-quarter net margin — the difference between gross profit and total expenses, including interest payments and taxes — rose by 0.01 percentage points from the second quarter to 2.22 percent but fell by 0.41 percentage points from a year earlier.

In the first nine months of this year, Hon Hai’s net profit rose by 6.9 percent from a year earlier to hit NT$101.50 billion with EPS at NT$7.32, up from NT$6.85 a year earlier.

In the nine-month period, Hon Hai said, its gross margin stood at 6.19 percent, up by 0.14 percentage points from a year earlier and its operating margin also moved higher by 0.43 percentage points to 2.77 percent, while its net margin fell to 2.17 percent from 2.31 percent a year earlier.

 

 

Source: Focus Taiwan News Channel