Apple supplier Foxconn's Q4 profit slips, lags view

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FILE PHOTO: People wear masks to protect themselves from the coronavirus disease (COVID-19) while listening to the annual general meeting at the lobby of Foxconn’s office in Taipei, Taiwan, June 23, 2020. REUTERS/Ann Wang/File Photo

TAIPEI -Foxconn, the world’s largest contract electronics maker, posted on Tuesday a lower fourth-quarter profit that lagged expectations despite strong iPhone 12 sales and pandemic-led demand for telecommuting devices.

The Taiwanese firm, which counts technology giants such as Apple Inc among its major clients, booked a October-December net profit of T$45.97 billion ($1.61 billion).

That represented a 4% decline from a year earlier, according to a company statement, and compared with the T$50.89 billion average of 11 analyst estimates compiled by Refinitiv.

Formally called Hon Hai Precision Industry Co Ltd, Foxconn’s fourth-quarter revenue rose 15% on the year.

That was mainly driven by a more than 15% revenue increase on the year from consumer electronics including smartphones, which accounted for 63% of its business in the quarter, Foxconn said without elaborating.

The company had previously forecast fourth-quarter revenue to be in a range of a decline of 3% and gain of 3% from a year earlier.

Foxconn had also said it expected revenue to grow about 10% in 2021 thanks to “stronger than expected” sales for smartphones, including the new iPhone 12, as well as telecommuting devices amid a coronavirus-induced work-from-home trend.

Shares of Foxconn have climbed almost 41% this year. They ended up 0.78% on Tuesday, compared with a 0.48% rise in the broader market.

($1 = 28.5280 Taiwan dollars)

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