Foxconn International Net Loss Widens More Than Estimated
March 30, 2011, 11:17 PM EDTBy Joshua Fellman
(Adds today’s share prices in third paragraph.)
March 31 (Bloomberg) -- Foxconn International Holdings Ltd., the Hong Kong-listed unit of the Foxconn Technology Group, posted a full-year net loss that was wider than analysts estimated as costs increased and sales shrank. The shares fell.
The net loss was $218.3 million, or 3.06 cents a share, compared with net income of $38.6 million, or 0.55 cent, in 2009, Foxconn said in a Hong Kong stock exchange filing yesterday. The mean estimate of seven analysts surveyed by Bloomberg was for a net loss of $202 million.
The stock fell 5.5 percent to HK$4.62 at 11:10 a.m. in Hong Kong, headed for its lowest close in almost two years. The benchmark Hang Seng Index climbed 0.2 percent.
Foxconn Group increased salaries last year after a spate of suicides prompted clients to investigate working conditions, and is expanding in China’s interior, where costs are lower. The Hong Kong-listed unit is selling its Taiyuan, China, unit to its parent to help reduce fixed costs.
“We need to take decisive actions to conclude our capacity relocation, optimize our cost structure and return to profitability,” Foxconn said today.
Sales at Foxconn International fell to $6.63 billion from $7.21 billion in 2009, according to the statement. The company didn’t recommend payment of a dividend.
--Editors: Chris Staiti, Cecile Daurat
To contact the editor responsible for this story: Joshua Fellman at jfellman@bloomberg.net
