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Foxconn expects drop in Q3 net profit and revenue, eyes Q4 growth

EditorAmbhini Aishwarya
Published 2023/11/13, 12:24
© Reuters.

Foxconn Technology Group, the world's largest contract electronics manufacturer, is expected to report a decline in its third-quarter net profit and revenue on Tuesday. According to S&P Global Market Intelligence data, the company is anticipated to announce a 10% decrease in net profit to NT$34.89 billion (US$1.08 billion), down from NT$38.76 billion during the same period last year. The unaudited figures also suggest a 12% fall in third-quarter revenue to NT$1.543 trillion.

The drop in revenue for October was marked by a 4.6% decline to NT$741.20 billion, impacted by reduced sales of cloud and networking products as well as a decrease in demand within the personal-computer market. Despite these setbacks, Foxconn remains optimistic about its business prospects, projecting substantial growth in the fourth quarter and shifting investor focus towards future estimates.

Foxconn's financial performance has been affected by broader economic challenges, including global high inflation rates. The company saw its operating profit margin dip to 2.37% in the second quarter, down from 2.77% in the first quarter and a decrease from 2.94% the previous year.

In related news, Chinese state media have reported that Foxconn is cooperating with Chinese authorities on investigations into tax and land-use discrepancies. This development comes as businesses globally grapple with regulatory scrutiny amidst an economically turbulent environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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