UPDATE 1-Apple supplier Foxconn's Q1 profit slumps 56% y/y, lags forecasts

Reuters · 05/11/2023 02:54
UPDATE 1-Apple supplier Foxconn's Q1 profit slumps 56% y/y, lags forecasts

Adds details

- Apple Inc AAPL.O supplier Foxconn 2317.TW reported on Thursday a 56% fall in first-quarter profit, lagging forecasts in its biggest quarterly fall in three years, as global economic woes hurt demand for smart consumer electronics.

The Taiwanese company, which is the world's largest contract electronics maker, said profit for the January-March quarter fell to T$12.8 billion ($417.17 million) from T$29.45 billion in the same period the previous year.

It was much worse than an average forecast of T$29.18 billion profit from 13 analysts, according to Refinitiv.

Foxconn said it expected revenue for its key consumer electronics products to decline year on year in the second quarter. That group includes smartphones and makes up more than half of Foxconn's total revenue.

It expects revenues for cloud and products in 2023 to be flat, compared to a previous forecast of significant growth for those sectors.

Overall, revenues for the second quarter would fall, while full-year revenues would be flat, the Taiwanese company said. Foxconn earlier this year forecast revenue to be flat for 2023.

($1 = 30.6830 Taiwan dollars)


(Reporting by Yimou Lee; Editing by Jacqueline Wong and Sonali Paul)

((ben.blanchard@thomsonreuters.com))