TAIPEI: Taiwan's Foxconn, the world's largest contract electronics maker, reported on Monday a 2% fall in fourth-quarter profit versus the same period a year earlier, lagging estimates despite strong global demand for AI products.
Net profit for October-December for Nvidia's biggest server maker and Apple's top iPhone assembler was T$45.21 billion ($1.42 billion), versus an LSEG consensus estimate of T$63.86 billion. Foxconn did not provide a reason for the profit fall in its earnings release.
Foxconn, formally called Hon Hai Precision Industry, in January reported record fourth-quarter revenue on strong demand for AI products.
Most of the iPhones Foxconn makes for Apple are assembled in China, but it now produces the bulk of those sold in the United States in India. The company is also building factories in Mexico and Texas to make AI servers for Nvidia.
Foxconn has also been looking to expand its footprint in electric vehicles, which the company sees as a major future growth generator, though that has not always gone smoothly.
In August, Foxconn said it had struck a deal to sell a former car factory at Lordstown, Ohio, for $375 million, including its machinery, that it purchased in 2022 to manufacture EVs.
Foxconn will hold its earnings call later on Monday in Taipei, where it is also expected to update its outlook for the year.
Foxconn's shares have dropped 6% so far this year, underperforming the broader Taiwan index's 15% gain.
Its shares closed up 0.9% on Monday ahead of the earnings release. - Reuters
