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Apple supplier Foxconn posts 14.5 percent drop in first-quarter net profit, lags forecasts

Reuters  |  TAIPEI 

(Reuters) - Taiwan's Foxconn, the world's largest contract maker and supplier to Apple, posted a 14.5 percent fall in first-quarter net profit on Monday, lagging estimates despite a strong quarter for the U.S. maker.

Net profit for the first three months of 2018 for the company known formally as reached T$24.08 billion ($809 million), it said in a filing to the stock exchange.

That was down 14.5 percent from T$28.168 billion a year earlier, according to Reuters' calculations. The first-quarter result was also lower than an average estimate of T$28.71 billion from nine analysts, data showed.

In May reported resilient sales in the face of waning global demand, with quarterly results that topped Wall Street forecasts. assembles including iPhones for Apple, which is a major customer.

Terry Gou, however, has been moving towards reducing the company's dependence on by diversifying. In 2016 it acquired control of Japanese and display Sharp Corp.

And in March, a unit of announced it is buying Belkin International, a California-based maker of in a deal worth $866 million. Another unit, which makes and industrial robots, filed on Monday for an IPO in to raise capital for 5G-related projects and other uses.

(Reporting by in SINGAPORE and Zhang Min in BEIJING; Writing by Jess Macy Yu; Editing by and Murali Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 18:07 IST