Foxconn International Holdings Ltd (富士康控股), the world’s biggest contract maker of mobile-phones, had a second-half loss as orders slumped amid the deepening global recession.
Net loss was US$21.1 million, compared with a US$397.4 million profit a year earlier, figures derived from full-year earnings reported by the Shenzhen-based company showed yesterday.
Second-half sales fell to US$4.5 billion from US$6.1 billion, the company said.
Foxconn, the worst-performing member in Hong Kong’s benchmark Hang Seng Index in 2007 and last year, faces falling orders from customers including Nokia Oyj and Motorola Inc. The Taiwanese company is moving production to lower-cost sites in northern China to cut expenses.
“Companies such as Nokia and Motorola will outsource less production to contract manufacturers as they look to keep in-house work as far as possible,” said Jenny Lai (賴惠娟), who rates Foxconn shares “sell” at CLSA Ltd in Taipei.
Foxconn may post a 27 percent decline in revenue this year, she said.
Foxconn, a unit of Taiwan’s Hon Hai Precision Industry Co (鴻海精密), said in January that “lower demand” and pricing pressure from the global recession led to the decline in its earnings.
“The financial tsunami had rapidly swept through all regions,” the company said in its earnings statement yesterday.
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