Foxconn Technology Group, the Taiwan-based electronics maker, reported a 0.9% decline in net profit for the second quarter compared to the previous year. Revenue decreased by 14%, and profit margins also worsened during this period.
For the quarter ended June, Foxconn's net profit stood at NT$33.00 billion (US$1.03 billion), surpassing analysts' estimates of NT$25.82 billion. However, this figure was lower than the NT$33.29 billion in the same period last year.
Second-quarter revenue reached NT$1.305 trillion, down 14% compared to the previous year. Consumer-electronics and cloud-and-networking products experienced a decline in sales, while demand in the personal-computer market slowed down.
The operating-profit margin for Foxconn deteriorated to 2.37%, a decrease from 2.94% in the second quarter of the previous year.
Foxconn anticipates an improvement in its consumer-electronics business in the third quarter, although it is likely to perform worse than in the same period last year.
In contrast, the company expects its cloud-and-networking and computer-products businesses to have a weaker performance in the third quarter compared to the previous year.
July Revenue Snapshot
In July, Foxconn's revenue dropped by 1.2% to NT$469.23 billion compared to the same month last year.
Despite facing challenges in revenue and profit margins, Foxconn remains optimistic about its future performance in specific sectors while acknowledging the need for improvements in others.