Foxconn Profit Slumps Along With iPhone Sales

BEIJING—Foxconn Technology Group reported a 31% decline in second-quarter net profit, as iPhone sales have slumped in a maturing market.

The Taiwanese electronics contract manufacturer, a major supplier for Apple Inc., said its net profit in the period fell to 17.7 billion New Taiwan dollars (US$566 million) from NT$25.7 billion a year earlier.

Analysts expected a profit of NT$23.9 billion, according to an average estimate by Thomson One Analytics.

Foxconn, whose official name is Hon Hai Precision Industry Co., said its consolidated revenue fell 5.2% to NT$922 billion from NT$972.7 billion a year earlier.

Foxconn also said it had received Chinese regulatory approval for its acquisition of Japanese electronics maker Sharp.

After years of rapid growth, Apple posted a decline in profits in its last two quarterly results, as iPhone sales are crimped by competition from Chinese brands and growing market saturation.

Foxconn's results for the quarter ended in June didn't include its acquisition of struggling Japanese electronics maker Sharp Corp.

Unlike most major listed companies, Foxconn doesn't hold quarterly earnings conferences or give earnings guidance. But at its annual shareholder meeting in June, Foxconn Chairman Terry Gou said the company faced a tough business environment and was focused on investing in next-generation technologies and streamlining operations at Sharp to make the Japanese firm profitable.

Write to Eva Dou at [e-mail]

(END) Dow Jones Newswires

August 11, 2016 12:15 ET (16:15 GMT)

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