Foxconn Technology Group 4Q Net Pft TWD39.98B Vs. Pft TWD44.40B

By Kosaku Narioka

Foxconn Technology Group’s fourth-quarter net profit fell 9.9% from a year earlier as the Covid-19 outbreak disrupted some operations in China and profit margins eroded. .
The Taiwan-based electronics maker, formally known as Hon Hai Precision Industry Co., said Wednesday that net profit for the quarter ended Dec. 31 fell to 39.98 billion New Taiwan dollars (US$1.31 billion) from NT $44.40 billion in the same period of one year.  years earlier.  That slightly beat the estimate of NT$39.78 billion from a poll of analysts by S&P Global Market Intelligence.
Fourth-quarter revenue rose 3.9% from a year earlier to NT $1.963 trillion, due in part to strong demand for its cloud business server and networking products.
The electronics maker said its operating-profit margin fell to 2.25% in the fourth quarter from 2.79% last year.
Foxconn, best known for assembling Apple Inc.’s iPhones, said fourth-quarter revenue for its consumer-electronics business was little changed from a year ago because as the Covid-19 attacks have affected some operations at the Zhengzhou campus in central China.
Protests have erupted at the world’s largest iPhone production site as workers grow frustrated over strict pandemic control policies and wages.
Foxconn said on Wednesday that it expects its consumer-electronics businesses to perform worse in 2023 than last year, while it expects its cloud and networking and computer products businesses to perform better this year.
Foxconn said revenue in the first two months of 2023 increased 18% from a year earlier to NT$1.062 trillion, as operations at its Zhengzhou campus returned to normal and the supply of parts developed for the computer products business.
Write to Kosaku Narioka at kosaku.narioka@wsj.com