Foxconn's Second-Quarter Net Profit Slips as Revenue, Margin Decline

By Kosaku Narioka

Foxconn Technology Group said Monday that its second-quarter net profit declined 0.9% from a year earlier as revenue fell and margins deteriorated.

The Taiwan-based electronics maker, formally known as Hon Hai Precision Industry, said that net profit fell to 33.00 billion new Taiwan dollars (US$1.03 billion) for the quarter ended June from NT$33.29 billion a year earlier. That beat the estimate of NT$25.82 billion from a poll of analysts by S&P Global Market Intelligence.

Second-quarter revenue decreased 14% from a year earlier to NT$1.305 trillion as sales dropped for consumer-electronics and cloud-and-networking products, while demand slowed in the personal-computer market.

The electronics maker said that its operating-profit margin deteriorated to 2.37% in the second quarter from 2.94% a year earlier.

Foxconn, known for assembling Apple's iPhones, said it expects its consumer-electronics business to perform better in the third quarter than in the second, though it will likely do worse than in the third quarter of last year.

The company also projects that its cloud-and-networking and computer-products businesses will perform worse in the third quarter than in the previous year.

Foxconn has said that revenue in July declined 1.2% from a year earlier to NT$469.23 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 14, 2023 03:07 ET (07:07 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.