Taiwan's Foxconn forecasts strong revenue growth even as profit lags forecasts - Reuters

Taiwan's Foxconn forecasts strong revenue growth even as profit lags forecasts. The world's largest contract electronics maker, Foxconn, on Monday projected robust revenue growth for the current quarter, driven by demand for its consumer electronics and cloud networking products. However, the company's net profit for the first quarter fell short of analyst expectations due to rising costs and supply chain disruptions. Foxconn, officially known as Hon Hai Precision Industry Co Ltd, reported a net profit of NT$17.7 billion ($635 million) for the January-March period, a 4.5% decrease from the previous year. Revenue, on the other hand, increased by 10.3% to NT$1.37 trillion. The company expects revenue to grow by 10% to 15% in the second quarter, with consumer electronics and cloud networking products being key drivers. "We are optimistic about the second quarter," said Foxconn Chairman Young Liu during an online earnings call. "We expect revenue to grow by 10% to 15% year-on-year." Liu also noted that the company is seeing strong demand for its electric vehicle components and is expanding its presence in the automotive sector. Despite the profit miss, Foxconn's outlook for the full year remains positive, with the company anticipating revenue growth in the mid-single digits. The company's shares rose 1.5% in early trading following the announcement.