The COVID-19 pandemic had a massive impact on Foxconn's first quarter earnings

The COVID-19 pandemic had a massive impact on Foxconn's first quarter earnings

Foxconn reported the lowest earnings in the first quarter of the past two years. The COVID-19 pandemic has had a huge impact on the demand for smartphones, and it seems that the recovery could take a long time.

Foxconn's Liu Young-way had a few words about the company's Q1 earnings. These declined by 90 percent compared to the previous year due to production downtimes due to the corona virus.

According to a Reuters report:
“Foxconn's first quarter profit fell to its lowest level in two decades. far from wiped out after the coronavirus pandemic forced the Taiwanese company to shut down production in China and reduced demand from customers like Apple […]. "
Hon Hai will stabilize in the second quarter," said Foxconn in One. The major factories in China have now resumed normal operations. “
Net income from January to March decreased 90% year over year to T $ 2.1 billion ($ 70.3 million) – the lowest level since the first quarter of 2000 and a refinitive -Consensus estimate of $ 8.88 billion. Sales decreased by 12%.
For the second quarter, the company expects double-digit sales growth from January through March, although it is still expected to post a single-digit decline over the same period last year.
The division is expected to post an annual 15% drop in sales as the virus will have an "enormous" impact on demand. The division accounted for 42% of sales in the first quarter.
“In consumer electronics products, the fact that everyone stays at home naturally affects consumer purchasing power, and that power can take a long time to recover.

The second half of the year is still a mystery, but Liu expects growth in the computer department as locks demand for devices for people who work from home and for products that offer home entertainment

Source 9to5Mac

Via Reuters

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