Sci-tech

Foxconn’s profits plunged almost 90%, due to COVID-19 shutdown

Foxconn’s profits plunged almost 90%, due to COVID-19 shutdown”

Foxconn already informed investors that the company doesn't expect to record profits and told them to brace.

The first-quarter results aren't surprising given that the company was forced to halt production at multiple of its facilities in China due to the COVID-19 outbreak.

Net profit for January-March slumped 90% to T$2.1 billion ($70.3 million) from a year earlier - the lowest level since the first quarter of 2000 and well short a Refinitiv consensus estimate of T$8.88 billion.

Shares of Foxconn (OTCMKTS: FXCOF) closed the day 1.2% in red after the tech firm said its first-quarter profit crashed almost 90% amid the COVID-19 outbreak. There will, nevertheless, proceed to be lower than optimum numbers, as smartphone gross sales are anticipated to proceed to decline or stagnate for a lot of corporations - driving down demand for Foxconn's companies.

More news: Toothpaste trip sidelines Augsburg coach from Bundesliga restart

While demand for smartphones remains unclear, other business units are expected to see revenue growth of more than 10% in the second quarter from a year earlier thanks to rising demand from telecommuting and online entertainment, it added. "Right now, there is no way I can offer the outlook for the latter half of this year".

"Hon Hai will stabilize in the second quarter", Foxconn said in a statement, adding that it expects revenue will show double-digit growth in the second quarter from the first quarter.

The visibility of our outlook for the whole year is limited. Looking at the weekly chart, the price action looks like it wants to reverse its bullish trend as the buyers are struggling to extend the uptrend higher.



Like this

loading...
loading...

Latest


17 May 2020
Almost 600,000 Australians lost jobs due to virus pandemic
Underutilization rate, which is a combination of unemployment and underemployment, is at a record high of 19.9%. He said with worldwide tourism closed off, a concerted effort would be needed to improve domestic tourism.

17 May 2020
Food Chains Adding Safety Measures Before Reopening Dining Areas
McDonalds will also cap spending at £25 per vehicle and is encouraging customers to use contactless methods wherever possible. The Dublin restaurants will begin serving customers by drive-thru and are opened on a pilot basis.

17 May 2020
China’s Wuhan conducted 113,609 COVID-19 tests on May 15
All of the new cases were locally transmitted and the number of new asymptomatic cases fell slightly to 11 from 12 a day earlier. Asymptomatic cases are where people test positive for the disease, but show no outward signs of the disease.

17 May 2020
Mary-Kate Olsen's Emergency Divorce Request Has Been Denied!
A spokesperson for New York Supreme Courts said: "Currently, we are only accepting essential/emergency matters for filing. While it is obvious that quarantine is not easy for everyone, it is taking a toll on some people's relationships.

17 May 2020
Alleged Redmi Note 10 appears on TENAA, specifications revealed
The quoted clock speed doesn't line up with Qualcomm's Snapdragon 700 series 5G chips or MediaTek's Dimensity 800 series. There aren't any Redmi Note devices with 5G yet though, so this would be a major upgrade for the budget-focused family.

17 May 2020
Coronavirus: Trudeau tight-tipped on possible support for Air Canada, other airlines
Air Canada did not respond directly to questions about whether it would drop the wage subsidy, which Ottawa recently extended through August.

17 May 2020
Dunbar's lawyer: 5 witnesses exonerate CB of role in armed robbery
Police are still searching for Quinton Dunbar , a 27-year-old Seattle Seahawks cornerback, also charged with armed robbery . The league will review the incident under its personal conduct policy and hand out discipline if warranted.

17 May 2020
Vitalant Urges NJ to Take Action and Save Lives Amidst COVID-19
A final test will be conducted after he completes this period before the patient can donate blood plasma. A specific donor was needed for the Canadian Blood Services trial of convalescent plasma.

17 May 2020
Meghan Markle, Prince Harry surprise crisis line workers on Zoom call
The couple took a six-week break from their royal duties and spent the holidays away from the royal family. Established in 2013, the service allows people to text a trained crisis counsellor when they're in need.

17 May 2020
Teaching unions to work with Government on re-opening of schools
The position of Ms Longfield was that the United Kingdom needs to begin sending children back to school instead of relying on a vaccine for coronavirus which may never arrive.