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

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

SummaryNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

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
03/24 Toshiba unlikely to sell semiconductor unit to Chinese or Taiwanese companies
03/21DJIt's Apple vs. Trump in Taiwan, and the iPhone Maker Is Winning
03/15 HON HAI PRECISION INDUSTRY : Foxconn's Terry Gou wants genetic testing for cance..
03/14 Adjustment of FIH Structured Products, Futures, Options
03/13 HON HAI PRECISION INDUSTRY : announced unaudited consolidated revenue for Februa..
03/13 HON HAI PRECISION INDUSTRY : Foxconn's Terry Gou set to fight breast cancer in T..
03/10 FIH MOBILE : 2016 Net Down 40%
03/10 FIH MOBILE : year net down 39.6% to US$138m; div US1.778 cts
03/08 HON HAI PRECISION INDUSTRY : Taiwan talk show host ordered to pay fine to tycoon
03/08 HON HAI PRECISION INDUSTRY : TSMC, Hon Hai mum on rumors of Toshiba joint bid
More news
Sector news : Electronic Repair Services
03/21DJIt's Apple vs. Trump in Taiwan, and the iPhone Maker Is Winning
03/14 SAMSUNG ELECTRONICS : Jailed Samsung chief can get plenty of visitors, may still..
02/06DJSamsung's Conclusions on Galaxy Note 7 Recall Backed Up by Regulator
01/26 Dow Chemical's results, forecast benefit as economic growth boosts demand
01/24DJCORNING INCORPORATED : Top and Bottom Lines Grow
More sector news : Electronic Repair Services
News from SeekingAlpha
2016 WALL STREET BREAKFAST : Mario Draghi Takes Center Stage
2016 Apple supplier share movement after iPhone 7 launch
2016 Apple, suppliers gain following report of strong iPhone 7 production orders
2015 Foxconn Branching Out Of Its Core 'Big Electronics Factory' Domain
2015 WALL STREET BREAKFAST : Volkswagen Rocked By Emissions Scandal
Advertisement
Financials ( TWD)
Sales 2016 4 361 665 M
EBIT 2016 153 746 M
Net income 2016 129 650 M
Finance 2016 359 495 M
Yield 2016 3,77%
P/E ratio 2016 11,97
P/E ratio 2017 10,93
EV / Sales 2016 0,28x
EV / Sales 2017 0,25x
Capitalization 1 569 984 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 18
Average target price 92,2  TWD
Spread / Average Target 1,7%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Terry Gou Chairman & Chief Executive Officer
Ga-Lane Chen Chief Technology Officer & CIO
Cheng Wu Tai President-Business Group, Director & VP
Yi Pin Chien Director, President-Business Group & VP
Cheng Yue Liu Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HON HAI PRECISION INDU..51 709
AMPHENOL CORPORATION5.61%21 835
AAC TECHNOLOGIES HOLDI..39.20%15 504
LENS TECHNOLOGY CO LTD--.--%10 296
LUXSHARE PRECISION IND..--.--%7 703
SENSATA TECHNOLOGIES H..8.37%7 213
More Results