Hon Hai monthly revenue surpasses NT$1 trillion

• By Meryl Kao / Staff reporter

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Hon Hai Precision Industry Co (鴻海精密) yesterday reported a 38.42 percent year-on-year increase in revenue last month to a record NT$1.16 trillion (US$36.49 billion), driven by strong growth in its cloud and networking, electronic components and computing products businesses.

On a monthly basis, revenue rose 25.7 percent from NT$921.77 billion in August, which the company attributed to strong sales of smart consumer electronics products, mainly smartphones. Last month’s figure exceeded NT$1 trillion for the first time in Hon Hai’s history, the company said in a statement.

Third-quarter revenue rose 47.12 percent year-on-year and 20.44 percent quarter-on-quarter to NT$3.27 trillion, also marking a record high for the period, Hon Hai said.

The Foxconn logo is displayed at its booth during the AutoTronics Taipei trade show at the Taipei Nangang Exhibition Center on April 15.

Photo: I-hwa Cheng, AFP

Analysts on average expected revenue to rise to about NT$2.83 trillion in the third quarter, Bloomberg News reported.

Hon Hai said the better-than-expected third-quarter performance was driven mainly by strong growth in its cloud and networking products, electronic components and computing products businesses.

The cloud and networking products business — primarily servers — posted strong year-on-year revenue growth last quarter, as customers accelerated orders for artificial intelligence (AI)-related products, Hon Hai said.

Hon Hai, also known as Foxconn Technology Group (富士康科技集團), is Apple Inc’s primary iPhone assembler and makes servers powered by Nvidia Corp’s AI accelerators.

The company in August said it expected AI server rack shipments to grow by a high double-digit percentage sequentially in the third quarter, with full-year shipments expected to more than double this year. Strong contributions from AI servers are expected to continue at least until next year, it said.

Last quarter, the electronic components business also posted strong year-on-year growth, driven by higher revenue from its major components operations and other businesses, while the computing products business grew strongly on higher average selling prices and front-loaded shipments, Hon Hai said.

In the first nine months of this year, revenue rose 39.53 percent year-on-year to NT$7.67 trillion, surpassing the previous record of NT$5.5 trillion set in the same period last year, it said.

The company said the cloud and networking products and electronic components segments posted the strongest annual growth among its businesses during the period.

In this quarter, growth momentum from AI-related products is expected to continue, while the traditional peak season for information and communications technology products should also support overall performance, Hon Hai said, adding that uncertainties in the global political and economic environment warrant close monitoring.