Manufacturing News

Hon Hai Challenges NT$3 Trillion in Sales in 2010

Hon Hai Precision Industry Co., Taiwan's largest EMS (electronic manufacturing service) provider, will see consolidated sales hit NT$3 trillion this year.

Hon Hai's consolidated sales amounted to NT$846.7 billion in the third quarter. An institutional investor forecasts Hon Hai will see consolidated sales hit between NT$900 billion and NT$1 trillion in the fourth quarter.

With gross profit margin reaching 8.2%, Hon Hai secured NT$2.045 trillion in consolidated sales in the first three quarters of this year.

Despite a mere 4.6% gross profit margin for non-consolidated sales, Hon Hai still enjoys bigger profit margin in sales of electronic components by subsidiaries, including Q-Run Technology Corp.

Nevertheless, Hon Hai still saw consolidated gross profit margin drop a percentage point in the first three quarters of this year from 9.2% a year earlier. The company saw after-tax earnings amount to NT$55.722 billion, or NT$5.97 per share, in the first three quarters of this year.

Based on the consolidated financial statement, Hon Hai lost NT$1.777 billion in equity investment in its subsidiary - Foxconn Holdings that is listed on the Hong Kong Stock Exchange, which might encounter an operating loss of NT$2 billion in the third quarter.

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