Apple supplier Foxconn’s Q4 earnings beat estimates

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

March 16, 2022

TAIPEI (Reuters) – Taiwan’s Foxconn, the world’s largest custom electronics manufacturer which counts tech giants like Apple Inc. among its main customers, reported fourth-quarter earnings on Wednesday that slightly beat market estimates.

Foxconn reported net income of T$44.4 billion ($1.55 billion) for October through December, down 3.4% from the same period last year.

This compares to the average of T$43.32 billion from 10 analyst estimates compiled by Refinitiv.

Sales fell by 6% compared to the previous year.

Foxconn, officially called Hon Hai Precision Industry Co Ltd, had expected fourth-quarter sales to fall between 3% and 15%, citing the impact of a year-long shortage of chips that have halted production at companies from Apple to GM had disturbed.

On Wednesday, it said it expects revenue for the first quarter and full year to range between a 3% decline and a 3% increase.

The company halted operations in the Chinese city of Shenzhen on Monday to comply with the local government’s COVID-19 control guidelines and said it would deploy backup equipment to reduce production disruptions.

Foxconn said Wednesday some operations had been restored at its Shenzhen campus, where the company had both residential and manufacturing facilities.

1$ = 28.5700 Taiwan dollars)

(Reporting by Yimou Lee and Ben Blanchard; Editing by Sayantani Ghosh and Muralikumar Anantharaman)