Hon Hai sales hit May record high, rising 24% year-on-year

2018/06/09 14:29:38 fontsize-small fontsize-default fontsize-big
Hon Hai sales hit May record high, rising 24% year-on-year

Taipei, June 9 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. reported the highest revenue for the month of May, with earnings last month up over 24 percent from a year earlier.

On the back of strong demand for computing devices, Hon Hai, also known as Foxconn in the global market, posted NT$347.10 billion (US$11.64 billion) in consolidated sales for May, up 24.03 percent from a year earlier, data released by the company showed.

The May figure was also up 0.9 percent from a month earlier despite slow season effects, the data released on Friday indicated.

On a year-on-year comparison basis, Hon Hai benefited from solid demand for computing devices, followed by consumer electronics and communication devices, enabling it to enjoy such a significant gain in revenue for May, the company said.

On a month-on-month comparison basis, communication devices served as an anchor to the sales growth, outperforming consumer electronics and computing devices, Hon Hai said.

Market analysts said solid demand for communication devices in May helped offset the impact resulting from slow season effects, which led Hon Hai's sales in the month to top the previous month's.

The month-on-month sales growth improved from a 1.48 percent decline seen in April, Hon Hai's data showed, indicating global smartphone demand was not as slow as the market had previously anticipated.

Analysts said Hon Hai, an iPhone assembler for Apple Inc., recorded the better-than-expected revenue for May as applications used on the Internet were growing in a stable manner, while shipments of the iPhone X and iPhone 8, the latest Apple smartphone models, as well as computers also helped the manufacturer in May.

In the first five months of this year, Hon Hai posted NT$1.72 trillion in consolidated sales, up 8.8 percent from a year earlier, also the highest it has ever enjoyed for the same five-month period.

Judging from the sales performance in the previous two months, analysts said Hon Hai's revenue for the second quarter is expected to rise at a single digit pace despite slow season effects, to boost the bottom line for the April-June period.

In the first quarter, Hon Hai's net profit fell 14.7 percent from a quarter earlier to NT$24.08 billion due to slow season effects, with earnings per share at NT$1.39, compared with NT$1.63 in the fourth quarter.

Analysts said with a peak season approaching in the third quarter, Hon Hai's sales momentum will likely pick up in the second half of this year, especially as Apple unveils its next generation iPhone, likely in September.

Before the May data was released, shares of Hon Hai shed 3.18 percent to close at NT$88.30 on the Taiwan Stock Exchange as investors took cues from losses suffered by the tech-heavy Nasdaq index a day earlier to punish the local electronics sector.

(By Chung Jung-feng and Frances Huang)

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