Foxconn Q2 net profit jumps 12% to T$31.02 billion

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Foxconn Q2 net profit jumps 12% to T$31.02 billion

TAIPEI Apple Inc supplier Foxconn reported a higher than expected 12 per cent jump in the April-June net profit, driven by strong demand for its smartphones and cloud products, and said it was cautious about the third quarter but expected growth.

The Taiwanese company, the world's largest contract electronics maker, said smart consumer electronics including smartphones - its main business driver - posted significant growth in the second quarter and accounted for half of its overall revenue.

In the quarter ending September, Foxconn said it expects to see flat revenue growth for that business, as demand for smartphones and smart wearable devices slows after a period of pandemic-fuelled robustness.

The company, formally called Hon Hai Precision Industry Co Ltd, has been struggling with a shortage of chips that has squeezed production, and more recently a downturn in major markets due to high inflation and the war in Ukraine.

Foxconn expects revenues for cloud and networking products to be strong in the third quarter. It reaffirmed its position last month, that revenue this year will grow rather than the previous guidance of being flat.

It did not provide a numerical outlook.

The average profit was expected to be T $31.02 billion, according to Refinitiv.

Foxconn's revenue for the quarter increased 12 per cent to T $1.5 trillion.

Its shares were 0.9 per cent higher ahead of the earnings release, compared to a 0.7 per cent drop in the broader market. They have gone up 5.8 per cent this year, giving the company a market value of $50.3 billion.