Foxconn Expects Second-Quarter Growth After Higher March Revenue — Update
By Kosaku Narioka
Foxconn Technology Group reported higher March revenue, thanks to strong demand for cloud and consumer-electronics products, and said it expects growth in the second quarter despite the impact of a big earthquake that hit Taiwan this week.
Foxconn, formally known as Hon Hai Precision Industry, said Friday that revenue in March rose 12% from a year earlier to 447.54 billion New Taiwan dollars (US$13.95 billion).
The Taiwan-based electronics maker said revenue for its cloud and networking segment grew significantly due to strong customer demand for cloud products. Revenue for consumer electronics also showed strong growth.
The company said business in the second quarter is expected to grow from the previous quarter and a year earlier.
Last month, the electronics maker said the artificial-intelligence boom would enable significant growth this year. Foxconn makes servers and other devices used in AI applications.
Foxconn said Wednesday that the quake that struck eastern Taiwan earlier that day had only a slight operational and financial impact. The company, which shut down some Taiwan manufacturing lines for inspection, has resumed production, saying there was no damage to manufacturing equipment.
Known for assembling Apple's iPhones, Foxconn has been taking steps in recent years to diversify its business lines to include AI and electric vehicles. It is expanding production in countries such as India to reduce concentration in China.
The company on Friday said revenue for the first quarter fell 9.6% to NT$1.322 trillion, partly due to a high base caused by the recovery in consumer electronics a year earlier. In late 2022, shipments from a major iPhone assembly site in Zhengzhou, China, were affected by a Covid-19 outbreak.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 05, 2024 06:23 ET (10:23 GMT)
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