Shulou(Shulou.com)11/24 Report--

CTOnews.com, may 11 (Reuters)-Foxconn's net profit plunged 56% in the first quarter of this year, the biggest quarterly decline in three years and well below analysts' expectations. Foxconn said the global economic woes had led to a decline in demand for smart consumer electronics.

Foxconn, the world's largest contract electronics manufacturer, reported first-quarter results on Thursday, showing that its net profit fell to NT $12.8 billion (about 2.88 billion yuan) from NT $29.45 billion in the same period last year (CTOnews.com Note: about NT $6.626 billion), down 68% from a month earlier and 56% from a year earlier. The figure is well below the T $29.18 billion average forecast of 13 analysts on Refinitiv.

Foxconn's first-quarter gross profit margin and operating profit rate rose both in 2023, of which the first-quarter gross profit margin was 6.04%, up 0.38% from the previous quarter and 0.02% from the same period last year; the operating profit rate in the first quarter was 2.77%, up 0.52% from the previous quarter and 0.17% from the same period last year.

Foxconn expects revenue from its main consumer electronics to fall in the second quarter from a year earlier. These products include smartphones and account for more than half of Foxconn's total revenue. The company also expects revenue from its cloud computing and networking products to be flat in 2023, after it had predicted significant growth in these areas.

Foxconn said its total revenue would fall in the second quarter and be flat for the full year. Earlier this year, Foxconn also predicted that revenue would be flat in 2023.

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