Foxconn International 1st Half Net Profit Falls 56% to US$142.2 Million
HONG KONG -(Dow Jones)- Contract handset maker Foxconn International Holdings said Wednesday its first-half net profit fell 56% from a year earlier, on higher operating costs, changes in its product mix, and increased investment spending.
The company, which makes mobile phones for companies such as Motorola and Nokia, posted a net profit of US$142.2 million for the six months ended June 30, down from US$324.0 million a year earlier.
The result was lower than the average US$256 million forecast of five analysts polled by Dow Jones Newswires.
The blue-chip company said its first-half revenue rose 4.4% to US$4.79 billion from US$4.59 billion a year ago.
Foxconn said in June it expects its gross profit margin to fall this year because of a price war, as well as higher costs and corporate taxes in China.
-By Lorraine Luk, Dow Jones Newswires; 852-2802-7002; lorraine.luk@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 27th August 2008
