Foxconn Technology Group announced its third-quarter results, showcasing a notable increase in net profit. Here are the key details:
Net Profit Surge
Foxconn’s net profit for the three months ended September 30 rose by an impressive 11% compared to the previous year, reaching 43.13 billion New Taiwan dollars (US$1.33 billion). This surpasses the estimated NT$34.89 billion predicted in a poll of analysts conducted by S&P Global Market Intelligence.
Decline in Revenue
While net profit soared, third-quarter revenue witnessed a 12% decline in comparison to the previous year, amounting to NT$1.543 trillion.
What to Expect
Here is what Foxconn has in store:
Outlook
Foxconn, renowned for manufacturing Apple iPhones, anticipates an improved performance in its consumer-electronics business during the fourth quarter. However, it expects this segment to still fall short of the fourth quarter of the previous year.
Impressive Margins
The company’s operating-profit margin for the third quarter showed significant improvement, escalating from 2.37% in the previous quarter to 2.99%. Similarly, the gross-profit margin rose from 6.41% to 6.66% compared to the previous quarter.
Electric Vehicle Endeavors
Foxconn plans to initiate deliveries of its Model C electric vehicles in January following extensive mass production in the fourth quarter. The company is also engaged in EV projects with more than a dozen clients at various stages of development.