Hon Hai Precision's August Sales Hit Historical Monthly High
Hon Hai Precision Industry Co., Taiwan's largest private subcontract maker of electronics, scored US$6.71 billion in non-consolidated sales in August, up 9.35% from the preceding month for the highest historical monthly sales.
With August sales posted equaling yearly sales achieved by Taiwan's largest telecom carrier Chunghwa Telecom Co., Hon Hai has become Taiwan's first private firm to see monthly sales exceed NT$200 billion.
Hon Hai will likely see continued growth in September sales, enabling the maker to achieve the goal of NT$2 trillion in yearly sales.
Institutional investors predicted Hon Hai, which focuses on the production of 3C products as computers, communications and consumer electronics, will see outstanding performance in the third quarter when the electronics industry enters a sales boom.
Despite the promising growth in sales, Hon Hai is expected to encounter declining profitability as it has promised to raise wages in China beginning October 1, which will be the second wage increase since the beginning of this year.
Hon Hai spokesperson C.A. Ting attributes the company's outstanding sales to the booming sales of 3C products, especially consumer electronics.
Hon Hai chairman Terry Guo recently reduced the corporate goal for sales growth this year, saying it will be difficult to keep profitability so high in the next few years.