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
06/24 FOXCONN TECHNOLOGY : to invest US$10 billion in the US
06/23DJToday's Top Supply Chain and Logistics News From WSJ
06/22DJFOXCONN TECHNOLOGY : Taiwan's Foxconn Eyes Seven States for $10 Billion Investme..
06/22 UPDATE3 : Toshiba chip deal is far from over: Hon Hai
06/22 UPDATE2 : Toshiba chip deal is far from over: Hon Hai
06/22 UPDATE1 : Toshiba chip deal is far from over: Hon Hai
06/22DJFOXCONN TECHNOLOGY : in Talks With U.S. States Over New Plant
06/22 TOSHIBA CHIP DEAL FAR FROM OVER : Taiwan's Hon Hai chairman
06/20 SHARP : to file next week for return to First Section of Tokyo bourse
06/12 HON HAI PRECISION INDUSTRY : announced unaudited consolidated revenue for May 20..
More news
Sector news : Electronic Repair Services
06/06DJAAC TECHNOLOGIES : to Resume Trading Wednesday After Again Rebutting Short Selle..
04/26 LG DISPLAY : says 2017 capex could be higher than planned
04/19 Verizon, Corning agree to $1.05 billion fibre deal
04/18 Edison, GE unveil new battery systems at California gas plants
04/10 GOOGLE OFFERS AT LEAST $880 MILLION : Electronic Times
More sector news : Electronic Repair Services
News from SeekingAlpha
05/26 Sharp confirms Toshiba bid, forecasts first net profit in years
05/19 Why Western Digital Will Win Its Shotgun Divorce With Toshiba
05/18 Japanese fund building cash in possible Toshiba bid prep
05/16 NIKKEI : Sharp may buy up to 20% of Toshiba Memory unit
04/28 Apple supplier Foxconn plans investment into U.S.
Advertisement
Financials ( TWD)
Sales 2017 4 518 206 M
EBIT 2017 182 358 M
Net income 2017 149 964 M
Finance 2017 285 940 M
Yield 2017 3,90%
P/E ratio 2017 12,81
P/E ratio 2018 11,59
EV / Sales 2017 0,37x
EV / Sales 2018 0,33x
Capitalization 1 949 483 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 113  TWD
Spread / Average Target 0,22%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Terry Gou Chairman & Chief Executive Officer
Ga-Lane Chen Chief Technology Officer & CIO
Cheng Wu Tai President-Business Group, Director & VP
Yi Pin Chien Director, President-Business Group & VP
Cheng Yue Liu Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HON HAI PRECISION INDU..64 169
AMPHENOL CORPORATION11.73%22 946
AAC TECHNOLOGIES HOLDI..36.36%15 113
LENS TECHNOLOGY CO LTD--.--%11 292
LUXSHARE PRECISION IND..--.--%9 374
CATCHER TECHNOLOGY CO...--.--%9 159
More Results