Despite Big Growth, Foxconn’s Q1 Profits Down PDF Print E-mail
Written by Mike Buetow   
Friday, 02 May 2008 07:53
TAIPEI – Foxconn Electronics reported first-quarter net profits rose 2.9% year-over-year to NT$16.07 billion (US$528.6 million), despite sales growth of more than 20%.

Revenues were up 22.9% to NT$301.8 billion, the company said.

The company cited higher labor costs in China, rising raw material prices and employee bonuses eroded part of the net earnings. According to company spokesman Edmund Ding, employee bonuses will make up some 8% of the EMS firm’s net profits for 2007.

Foxconn Electronics is the trade name of Hon Hai Precision Industry Co.

For the quarter, gross margin was 4.82%, down 67 basis points from last year. Operating margin dropped 132 basis points to 2.4%.

Analysts said the company was likely hurt by declining margins at big cellphone customers like Nokia.

Hon Hai subsidiary Foxconn Precision Components reported first-quarter net earnings fell 22.6% to NT$1.25 billion. Gross margins upticked 38 basis points to 4.58%, and operating margins rose 66 basis points to 3.83%.
Last Updated on Friday, 02 May 2008 07:55


Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.



Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.





CB Login



English French German Italian Portuguese Russian Spanish


KIC Debuts K2 Thermal Profiler
K2 thermal profiler has plug-and-play hardware and a graphical user interface said to make profiling both quick and easy. Enables each thermocouple to use its own unique process window, while...