Foxconn Q2 sales fall 14%, Q3 outlook brighter ahead of shopping season

Taiwan's Foxconn, a major iPhone assembler for Apple Inc, said on Wednesday that second quarter revenue dropped 13.8% year-on-year but the outlook for the third quarter was brighter ahead of peak shopping season at the end of the year.

Foxconn, formally called Hon Hai Precision Industry Co Ltd and the world's largest contract electronics maker, said revenue in the April-June period reached T$1.3 trillion ($41.76 billion), in line with its expectations.

For smart consumer electronics products, which include smartphones and are the company's main business driver, revenue in the second quarter dropped, coming off a higher base in the year ago period, it said in a statement without giving details.

For the month of June, sales fell 19.7% year-on-year, though at T$422.8 billion it was still the second highest figure on record for the same period.

"With the second half of the year peak season currently underway, operations will gradually ramp up," the company said.

"The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on quarter pace higher than seen in the previous two years," it said.

"When compared to the pre-pandemic period, the growth rate is expected to be approximately on par."

The first half of the year is traditionally slower for Taiwan tech manufacturers as major electronics vendors including Apple launch new products near the year-end holiday season.

Foxconn reports its second quarter earnings on Aug. 14.

Foxconn posted a 56% plunge in first-quarter net profit, lagging forecasts in its biggest quarterly fall in three years. It took a $565 million write-off linked to its 34% stake in Japanese electronics maker Sharp Corp.Foxconn shares have risen 8.6% this year, lagging the broader Taiwan market, which is up 20.1%. They closed down 1.4% on Wednesday, compared with a 0.5% drop for the broader market.