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 news 

Foxconn workers sing its praises, but profit disappoints

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/29/2012 | 04:43am CET

Profit at Taiwanese contract maker Hon Hai Precision Industry's (>> Hon Hai Precision Industry Co., Ltd.) grew less than expected in the first quarter, but the main maker of Apple Inc (>> Apple Inc.) gadgets, whose plants have come under intense scrutiny over working conditions, was in party mood on Saturday.

Profit at Taiwanese contract maker Hon Hai Precision Industry's (>> Hon Hai Precision Industry Co., Ltd.) grew less than expected in the first quarter, but the main maker of Apple Inc (>> Apple Inc.) gadgets, whose plants have come under intense scrutiny over working conditions, was in party mood on Saturday.

Some 200 workers from its parent company Foxconn's plants in China sang, danced and cheered the company's billionaire founder at a party in Taipei marking the end of an all-expenses paid seven-day holiday the company arranged for top performing staff.

Foxconn has borne the brunt of criticism over working conditions at Chinese factories, in large part because of its association with Apple, and has become a symbol of the ethical debate over high-priced goods being made at low-cost plants, criticism it sees as unfair.

Over the past two years there have been a spate of suicides at the sprawling plants employing over a million workers making iPads and iPhones as well as gadgets for the likes of Microsoft and Nintendo. There has also been a deadly explosion at one plant and occasional fires.

Just two days ago, workers at a Foxconn plant in Wuhan, central China, protested over working conditions, with a report from a Hong Kong-based activist group saying some had threatened to jump off the roof of a building.

Hon Hai said the dispute was quickly solved without incident.

The company offered no explanation for the disappointing results which come after major customer Apple reported a quarterly profit that almost doubled on Wednesday and far exceeded forecasts thanks to a jump in iPhone sales, particularly in greater China.

The Foxconn group has gone on a charm offensive in recent months, raising wages several times, allowing a TV crew into one of its plants and sealing a landmark deal with Apple on improving working conditions that is likely to set a benchmark for western firms in China.

Chairman and founder Terry Gou said Saturday's event wasn't just for show.

"Some media said we're organizing this tour and event to change our sweatshop image, but this is a event we decided on a year ago," Gou told reporters.

"There is no image we need to change ... We have no problem standing before the open scrutiny of the world's media."

Next up for workers' benefits will be a hospital and language schools, Gou said.

Workers on the Taiwan trip attending Saturday's party said they were very happy with their working environment.

"Yes it's very good. It's always been very good," chorused three employees in unison as they snapped final souvenir photos in the canteen of the Hon Hai facility in Tucheng, just outside Taipei.

A fourth said he was aware of the bad publicity the company had drawn, but called it "biased."

None of the employees spoken to would give their names or phone numbers to reporters.

In a further move to boost conditions, Hon Hai said in its brief earnings statement released late on Saturday that it plans to issue restricted stocks and stock options for employee incentives, each involving 213.781 million new shares and representing up to 2 percent of the outstanding shares.

It said its net profit in the first quarter rose 3.6 percent to T$14.92 billion ($509.2 million), well down from the T$35.03 billion in the previous quarter and little changed from T$14.40 billion a year ago.

Nine analysts had forecast a profit of T$22.44 billion, according to a poll by Thomson Reuters I/B/E/S.

Hon Hai's Hong Kong listed affiliate Foxconn International Holdings (>> Foxconn Intl Hold), the world's top contract cell phone maker, warned of a substantial increase in its net loss for the first half of 2012 on Friday on lower demand from some of its key customers.

(Writing by Jonathan Standing; Editing by Jonathan Thatcher)

By Clare Jim

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HON HAI PRECISION INDUSTRY
02:19p Nokia phones to return with Android OS in 2017
12/04 Nokia phones to return with Android OS in 2017
12/04 Nokia to make come back on new products in 2017
12/01 HON HAI PRECISION INDUSTRY : Patent Issued for Modular Jack Having Transformer w..
11/28 HON HAI PRECISION INDUSTRY : Foxteq Holdings Acquires 3.28% Stake in Megvii Tech..
11/28 XTERA COMMUNICATIONS : Bankruptcy Filings Stories from the Bankruptcy Court Dock..
11/25 HON HAI PRECISION INDUSTRY : Sharp to Set up China Operation Management Arm in S..
11/22 HON HAI PRECISION INDUSTRY : Terry Gou urges Trump administration not to embrace..
11/17 HON HAI PRECISION INDUSTRY : displays 'smart plant' innovation
11/17DJAlibaba-Backed Chinese Logistics Company Plans U.S. IPO
More news
Sector news : Electronic Repair Services
11/29 Five things to know about Samsung Electronics' holding company review
11/24DJGOLDMAN SACHS : Plans Sale of South Korean Industrial-Gas Producer
10/23DJSAMSUNG ELECTRONICS : The Fatal Mistake That Doomed Samsung's Galaxy -2-
10/23DJSAMSUNG ELECTRONICS : The Fatal Mistake That Doomed Samsung's Galaxy Note
10/11DJSamsung Shaken by Galaxy Woes -- WSJ
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 4 358 341 M
EBIT 2016 153 326 M
Net income 2016 127 080 M
Finance 2016 356 944 M
Yield 2016 4,18%
P/E ratio 2016 10,99
P/E ratio 2017 9,95
EV / Sales 2016 0,24x
EV / Sales 2017 0,22x
Capitalization 1 415 758 M
More Financials
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 17
Average target price 83,7  TWD
Spread / Average Target 2,4%
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 Director, President-Business Group & VP
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HON HAI PRECISION INDU..44 383
AMPHENOL CORPORATION28.93%20 773
AAC TECHNOLOGIES HOLDI..35.84%10 861
LENS TECHNOLOGY CO LTD--.--%8 307
SENSATA TECHNOLOGIES H..-18.45%6 418
LUXSHARE PRECISION IND..--.--%6 225
More Results