Manufacturing News

Hon Hai November sales decline by 9%

Hon Hai Precision Industry Co., the world's largest provider of electronic manufacturing services, posted US$4.57 billion in sales in November, down 9.1% from a peak recorded in October and lower than market expectation.

Hon Hai saw cumulative sales amount to NT$1.287 trillion (US$39.96 billion) in the first 11 months of this year, down 4.7% 
year-on-year.

C.A. Ting, vice president of Hon Hai, attributed the sales decline in November to the seasonal slight slump in demand for consumer electronics. But Ting asserted the demand for personal computers is still on the rise.

Affected by the global financial crisis, Hon Hai is expected to see zero growth in 2009 sales. But institutional investors believed Hon Hai will be back on a normal track with annual sales growing over 10% in 2010 as the world economy is recovering. Some even predicted Hon Hai's sales to surge over 30% due mainly to a series of mergers and acquisitions materialized in 2009.

Hon Hai recently acquired Sony Corp.'s Mexico plant and Dell Computer Inc.'s Poland plant, which will help it boost sales in both 2010 and 2011.

Of domestic top-five manufacturers of electronic products, only Quanta Computer Inc. and Compal Electronics Corp. posted historic-high record in sales in November. But Hon Hai, Acer Inc. and Asustek Computer Inc. suffered sales decline in that month.

Acer Inc., one of Taiwan's top-five manufacturers of electronics, also saw sales decline 9.1% to NT$46.25 billion (US$1.43 billion) in non-combined sales in November, which, however, was up 30% year-on-year. The company had NT$436.3 billion (US$13.54 billion) in cumulative non-combined sales in the first 11 months of this year, up 10.9% year-on-year.

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