Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  TAIWAN STOCK EXCHANGE  >  Hon Hai Precision Industry Co., Ltd.    2317   TW0002317005

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Apple, supplier Foxconn to share costs on improving factories

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/10/2012 | 09:48am CEST

Apple Inc and its key supplier Foxconn Technology Group will share the initial costs of improving labor conditions at the Chinese factories that assemble iPhones and iPads, Foxconn's top executive said on Thursday.

Foxconn chief Terry Gou did not give a figure for the costs, but the group has been spending heavily to fight a perception its vast plants in China are sweatshops with poor conditions for its million-strong labor force. It regards the criticism as unfair.

"We've discovered that this (improving factory conditions) is not a cost. It is a competitive strength," Gou told reporters on Thursday after the ground-breaking ceremony for a new China headquarters in Shanghai.

"I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs."

It was unclear if the split would be 50/50 or in some other ratio.

Foxconn announced in mid-February it had raised wages for workers by 16 to 25 percent, and in late March it reached an agreement with Apple to hire tens of thousands of new workers to reduce overtime work.

Analysts have attributed weaker-than-expected first-quarter results at Foxconn's flagship listed unit Hon Hai Precision Industry Co Ltd mainly to rising salary costs.

Hon Hai has been trying to cut rising Chinese labor costs in the past two or three years, and has been relocating plants to areas of China where wages are lower.

FOCUS ON DOMESTIC CONSUMERS

Foxconn's manufacturing in China will focus on domestic consumers in the country of 1.3 billion people, as well as research and development in technology, sales and services, Gou said.

Foxconn Technology Group's other listed units include Foxconn International Holdings, the world's top contract mobile phone maker, and Foxconn Technology Co which makes casings.

Over the past two years, there has been a spate of suicides at Foxconn's sprawling plants which make the Apple products as well as gadgets for the likes of Microsoft and Nintendo.

Apple and Foxconn agreed earlier this year to improve conditions for workers assembling Apple products.

Despite Hon Hai's weak first-quarter showing, Gou said he expected the group to be able to reach its revenue growth target of 10 percent this year.

(Additional reporting by David Lin; Editing by Muralikumar Anantharaman)

By John Ruwitch

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HON HAI PRECISION INDUSTRY
09/24 SHARP : president to forgo salary for restructuring
09/23 SEMTECH : LoRa Wireless RF Technology Chosen by SoftBank for New IoT Network in ..
09/20 SHARP : aims to double LCD TV sales in FY 2018
09/16 HON HAI PRECISION INDUSTRY : raises US$1 billion from bond sale
09/15 HON HAI PRECISION INDUSTRY : Patent Issued for Cable Connector Assembly (USPTO 9..
09/15 HON HAI PRECISION INDUSTRY : and Sharp Corp. to establish joint IPR venture
09/15 Samsung sells all shares of Sharp following Hon Hai's buyout
09/15DJHON HAI PRECISION INDUSTRY : Raises US$1 Billion via USD Bond Sale in Two Tranch..
09/14DJHON HAI PRECISION INDUSTRY : Selling 5-Year and 10-Year USD Bonds -- Term Sheet
09/13 HON HAI PRECISION INDUSTRY : SoftBank to Roll Out 'LoRaWAN' Low Power Wide Area ..
More news
Sector news : Electronic Repair Services
09/19DJTech Data to Buy Avnet's Technology Solutions Unit
09/16 Samsung Elec to resume Galaxy Note 7 sales in South Korea on September 28
09/14DJSamsung Rushes to Contain Fallout From Galaxy Note 7 Recall
09/09DJSamsung, Watchdog Warn Against Using Galaxy Note 7
09/06DJAVNET : Removes Interim Tag for Its CEO
More sector news : Electronic Repair Services
News from SeekingAlpha
09/08 WALL STREET BREAKFAST : Mario Draghi Takes Center Stage
09/08 Apple supplier share movement after iPhone 7 launch
05/23 Apple, suppliers gain following report of strong iPhone 7 production orders
2015 Foxconn Branching Out Of Its Core 'Big Electronics Factory' Domain
2015 WALL STREET BREAKFAST : Volkswagen Rocked By Emissions Scandal
Advertisement
Financials ( TWD)
Sales 2016 4 293 502 M
EBIT 2016 148 369 M
Net income 2016 125 459 M
Finance 2016 316 114 M
Yield 2016 4,09%
P/E ratio 2016 10,99
P/E ratio 2017 10,08
EV / Sales 2016 0,24x
EV / Sales 2017 0,22x
Capitalization 1 357 247 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 17
Average target price 78,1  TWD
Spread / Average Target -1,1%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Terry Gou Chairman & Chief Executive Officer
Te Tsai Huang Head-Finance
Ga-Lane Chen Chief Technology Officer & CIO
Cheng Wu Tai President-Business Group, Director & VP
Yi Pin Chien President-Business Group, Director & VP
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HON HAI PRECISION INDU..43 273
AMPHENOL CORPORATION24.41%20 061
AAC TECHNOLOGIES HOLDI..57.52%12 596
LENS TECHNOLOGY CO LTD--.--%7 929
SENSATA TECHNOLOGIES H..-16.91%6 538
CATCHER TECHNOLOGY CO...--.--%6 276
More Results