TAIPEI: Hon Hai Precision Industry Co, Apple Inc’s iPhone assembler, yesterday posted a net income of NT$37.85 billion (US$1.14 billion) for last quarter, marking the highest net profit over the same period of time in the firm’s history.
On the back of improved efficiency and strong demand for Apple’s devices, Hon Hai’s earnings beat the estimate of NT$34.8 billion for last quarter, representing the third-highest quarterly profitability in Hon Hai’s history.
Net income jumped 11.06 percent from NT$34.08 billion made last year and 47.36 percent from NT$25.68 billion in the second quarter, according to the firm’s filing with the Taiwan Stock Exchange.
Earnings per share were NT$2.42, compared with last year’s NT$2.19 per share and prior quarter’s NT$1.65 per share.
Hon Hai said the mass production of a main client’s new products went smoothly last quarter. In addition to reduced costs and increased industrial automation, the firm’s core business last quarter outperformed the second quarter.
The company noted foreign exchange rate gains of NT$5.49 billion last quarter, mainly benefiting from the depreciation of yuan and the New Taiwan dollar against the greenback, market analysts said, adding that the exchange gains also helped profitability.
Analysts said they expect the iPhone assembler’s sales and profitability this quarter to continue grow from last quarter’s sales of NT$1.06 trillion and climb to the peak of the year.
“Sales this month and next month are likely to surpass Hon Hai’s sales of NT$502.96 billion in October due to peak season,” a market analyst, who declined to be named, said.
The company is seen as the sole assembler for Apple’s new tablet iPad Pro.
Hon Hai’s consolidated sales in the first 10 months reached NT$3.55 trillion, up 11.75 percent from NT$3.18 trillion in the same period last year.
Analysts said Hon Hai’s annual sales could grow more than 10 percent from last year’s record of NT$4.21 trillion.
