Foxconn Reports Revenue Growth In 4Q19

Foxconn Technology Group (Hon Hai Precision Industry) has announced consolidated revenues of NT$539.51 billion (US$17.79 billion) for December, down 10.48% on month and 12.89% on year, while its revenues for the fourth quarter of 2019 reached NT$1.73 trillion, growing 25.23% sequentially to hit the second-highest-ever record.

Foxconn’s consolidated revenues arrived at NT$5.33 trillion in full-year 2019, up slightly by 0.82% on year, and a new historical high.

In December, the enterprise-related product business including server and network communication devices had the best on-month revenue growth, followed by the component and other business composed of connector, chassis and services, the consumer and smart product business including smartphones, TVs and game consoles. The company’s computing business including PCs and tablets had the worst performance in the month.

For the fourth quarter of 2019, the computing business had the best sequential revenue growth, followed by the consumer and smart product business, the enterprise-related product business and the component and other business.

Some market watchers pointed out that the component and other business only contributed less than 10% of Foxconn’s overall revenues, while the consumer and smart product business accounted for nearly 50%. The enterprise-related product and computing businesses each commanded around 20% of Foxconn’s revenues.

For 2020, Foxconn is optimistic about the enterprise-related product business and expects strong on-year growth for the business, while the other three businesses will all see small on-year revenue growths.

Foxconn is pushing digital transformation to improve its profitability and is aiming to raise its operating profit margin by 1pp to reach a 10% gross margin.―Digitimes