By Foxconn Technology Group, the Taiwan-based electronics maker, has announced a rise in net profit for the third quarter of this year, driven by improved margins. Even though the company experienced a decrease in revenue from consumer electronics and cloud and networking equipment, its net profit increased by 11% compared to the same period last year, reaching 43.13 billion new Taiwan dollars (US$1.33 billion). This surpasses the estimate of NT$34.89 billion from a poll of analysts conducted by S&P Global Market Intelligence.
The decline in third-quarter revenue, which fell by 12% from last year to NT$1.543 trillion, can be attributed to weaker demand for personal computers and cloud and networking products. Additionally, there was a high base for consumer electronics products. Despite these challenges, Foxconn managed to improve its operating-profit margin to 2.99% in the third quarter, up from 2.37% in the previous quarter and 2.78% in the same period last year.
As well-known assemblers of Apple iPhones, Foxconn remains optimistic about its consumer-electronics business in the fourth quarter, although it anticipates performing worse than in the same quarter of last year.
For October, Foxconn reported a 4.6% drop in revenue to NT$741.20 billion, largely due to weaker demand for cloud and networking products and personal computers.
Comments