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Hon Hai Reports Highest Revenue Ever for June, Q2

Taipei, Jul 4 (CNA) Hon Hai Precision Industry Co., the world’s largest contract electronics manufacturer, reported its highest-ever consolidated sales for June and the second quarter on Monday, thanks to solid demand for its flagship products.

Hon Hai, also known as Foxconn in the global market, which assembles iPads and iPhones from Apple Inc, posted consolidated sales of NT$526.196 billion (US$17.71 billion) in June, up 31.02 percent year-on-year and a growth of 2.33 percent from the previous month, according to Hon Hai.

Compared to May, Hon Hai said its cloud and networking products, computing products, components and other products posted better-than-expected double-digit sales growth in June.

Year-over-year, the four major business divisions — smart consumer electronics, cloud and network technology, computing products and components, and other products — all posted robust double-digit revenue growth.

Hon Hai said server shipment revenues continued to rise in June due to strong demand from US-based cloud service providers.

Meanwhile, restrictions imposed by China to contain COVID-19 outbreaks have been gradually eased over the past month, significantly improving supply chain problems in June compared to May, boosting sales of computer products, as well as components. and other products, according to the company.

For the second quarter of the year, revenue was NT$1.51 trillion, up 11.3 percent from the same period last year and up 7.26 percent from the first quarter.

Compared to the first quarter, Hon Hai said its cloud and networking products showed double-digit revenue growth in the second quarter, while sales from its computing products and smart consumer electronics also increased, according to the statement.

In the first half of this year, Hon Hai’s consolidated revenue was NT$2.919 trillion, up 8.08 percent from the same period last year and also the highest ever for the period.

All four major business divisions posted revenue growth in the first six months of the year from a year earlier, with cloud and networking products posting double-digit growth, the statement said.

Looking ahead, Hon Hai said it is cautiously optimistic about its revenue performance in the third quarter, anticipating significant growth from the same period last year.

Hon Hai also raised its forecast for its business performance for the whole of 2022 from flat to improved, according to the statement.

(By Chuang Jung-feng and Evelyn Kao)

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