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Hon Hai’s quarterly revenue reaches a record NT$3.03 trillion

Hon Hai, internationally known as Foxconn, posted record July–September revenue of 3.03 trillion Taiwan dollars. Sales exceeded the market estimate, with strong growth in cloud and networking products and consumer electronics. September was its first month above one trillion Taiwan dollars. The company expects AI demand and the traditional electronics peak season to support the fourth quarter, while warning about political and economic volatility.

Economics & Markets··Morning
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Quarterly sales exceed the market estimate

Taiwan-based electronics manufacturer Hon Hai Precision Industry, known internationally as Foxconn, reported record consolidated revenue of 3.03 trillion Taiwan dollars for July–September. Sales rose 47.12 per cent from the corresponding quarter a year earlier and 20.44 per cent from the preceding quarter. The total exceeded the LSEG SmartEstimate of 2.83 trillion Taiwan dollars, a forecast measure that gives greater weight to analysts with more consistent accuracy. All four major business divisions recorded robust quarterly growth.[1], [2]

Foxconn attributed strong growth in cloud and networking products to demand for artificial intelligence equipment. Smart consumer electronics, the category that includes iPhones, also grew significantly during the quarter. For the first nine months, Hon Hai’s consolidated sales reached 7.67 trillion Taiwan dollars, an increase of 39.53 per cent from a year earlier. The nine-month result covers a longer reporting period than the latest quarterly release.[1], [2]

September sales cross the trillion-dollar threshold

September became Hon Hai’s first month with sales above one trillion Taiwan dollars. The annual increase was 38.42 per cent and the monthly increase 25.70 per cent. Cloud and networking products, electronic components and computing products improved significantly from a year earlier. Smart consumer electronics were largely unchanged on that annual comparison because higher product prices affected shipments, while the division grew strongly from August as international brands launched new products in September.[1]

Peak-season outlook precedes November earnings

Hon Hai expects AI-related demand and the electronics industry’s traditional peak season to support fourth-quarter performance. The company cautioned that rapid political and economic changes could affect demand and gave no numerical forecast. Full third-quarter earnings are scheduled for November 12. Foxconn shares closed 1.2 per cent higher on October 5 before the revenue figures were released, while Taiwan’s benchmark rose 2.6 per cent. Foxconn shares had gained 10 per cent during the year, compared with a 72 per cent rise in the Taiwan market.[1], [2]

References

  1. News sourceFocus Taiwan (CNA)Hon Hai monthly sales exceed NT$1 trillion for the first time↩1↩2↩3↩4
  2. News sourceReuters (The Economic Times)Foxconn third-quarter revenue rises 47 percent↩1↩2↩3
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