Foxconn reports a 12% decline in its full-year net profit
- Foxconn's full-year net profit slides 12% due to COVID-19 disruptions.
- The Taiwanese multinational reports £140 billion of annual revenue.
- Foxconn now forecasts a close to 10% growth in its revenue this year.
Foxconn Technology Group (TPE: 2354) said on Tuesday that its net profit posted a 12% decline in 2020 as the ongoing Coronavirus pandemic disrupted production and weighed on demand. The Taiwanese multinational is a prominent supplier for the U.S. tech giant, Apple Inc.,
Foxconn opened at £1.90 per share in the stock market on Tuesday and is currently trading at a per-share price of £1.91. In comparison, the stock had started the year 2021 at £1.42 per share after recovering from a low of £1.25 per share in April 2020. If you want to invest in the stock market online, you’ll need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.
Foxconn reports £140 billion of revenue
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Foxconn said that its net profit printed at £2.59 billion in 2020. According to S&P Global Market Intelligence, analysts had called for an even higher £2.71 billion of net profit in the recent year. The world’s largest contract electronics assembler valued its full-year revenue at £140 billion, compared to a slightly lower £139 billion in 2019.
In separate news on Tuesday, the British multinational tobacco company, Imperial Brands said it expected its profit and revenue to show resilience in the first half of 2021.
Formally known as Hon Hai Precision Industry Co., Foxconn assembles a range of products, including iPhones, for Apple Inc., primarily in China. The Tucheng District-based company generates nearly 50% of its revenue from its collaboration with Apple.
The global smartphone industry took a hit due to the COVID-19 crisis that has so far infected a little under 130 million people worldwide and caused over 2.8 million deaths. As per IDC (market research firm), global handset shipments came in 5.9% lower in 2020.
Foxconn’s guidance for 2021
For 2021, Foxconn now forecasts a close to 10% growth in its revenue. Chairman Liu Young-way said in a statement on Tuesday:
“The pandemic and the materials shortage could impact our performance going forward. That’s why we are being cautious.”
In an announcement in the first week of January, Foxconn said it signed a deal with the Chinese electric automaker Byton.
Foxconn performed fairly downbeat in the stock market last year with an annual decline of roughly 20%. At the time of writing, the Taiwanese multinational electronics contract manufacturer is valued at £2.70 billion and has a price to earnings ratio of 19.51.