Manufacturing News

Hon Hai Scores 2nd-Highest Monthly Revenue in May

The Taiwan-based Hon Hai Precision Industry Co., Ltd., now the world's largest EMS (electronics manufacturing service) provider, reported sales revenue of NT$163.2 billion (US$5.02 billion at US1: NT$32.5) for May, up 6.1% from April as the highest in the past 19 months or the second-highest of all time, according to the firm.

With the banner single-month revenue, the firm has scored aggregate revenue of NT$731.893 billion (US$22.519 billion) for the first five months of this year, sharply up 57.7% from a year earlier. Noteworthy is that the May revenue is also 78.1% more than the corresponding figure posted last May, reflecting the firm's significant turnaround from global meltdown.

Hon Hai's strong shipments of consumer electronics, handsets and PC products fueled the revenue growth in May, according to institutional investors. They stressed that Apple Inc's iPad and iPhone as well as TV game consoles of Sony, for instance, have contributed considerably to the firm's shipment growth in the recent months.

Although just deciding to raise worker wages as a way to cope with a spate of suicides at the Shenzhen plant complex of Hon Hai-affiliated Foxconn Technology in China, Terry Gou, chairman of Hon Hai Group, said at the investor conference that he's confident of the group's growth in the coming years, and said that he doesn't agree with investors' leeriness that the rising labor costs would undermine corporate profits in the future. "Hon Hai Group will remain operational in mainland China," he stated.

Despite the suicide crisis in the past few months, Foxconn Technology still saw its sales revenue grow by 12.4% to NT$11.432 billion (US$357.25 million) in May from April, adding to its aggregate revenue of NT$54.454 billion (US$1.675 billion) for the first five months of this year.

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