FIH expected to post first ever revenue drop in 2008
Foxconn International Holdings (FIH), the Hong Kong-listed handset manufacturing subsidiary of Foxconn Electronics (Hon Hai Precision Industry), will likely see its consolidated revenues slide 5-10% in 2008, representing the company's first annual sales decline since it was founded, according to estimates by market sources. In addition to the sales drop, the handset manufacturer would also record an over 50% on-year cut in 2008 profits, the sources added.
For 2009, FIH may face another revenue drop due to reduced orders from its major clients Motorola, Nokia and Sony Ericsson, according to the sources The vendors intend to adjust to the changing economic climate by lowering outsourced production, the sources commented.
FIH's financial report for 2008 is scheduled to be available by the end of April this year, according to the company, which declined to comment on any speculation regarding its financial status.
Company spokesman Vincent Tong said that the general slowdown of economies worldwide will have an inevitable impact on individual enterprises. FIH has turned more cautious about capital spending and capacity expansion for the near term, but is also looking for long-term prospects, Tong stated. For the long run, opportunities in the industry supply chain have surfaced such as demand for game console-use wireless modules, Tong added.
In related news, FIH has secured orders from new handset customers in China, but the segment does not contribute significantly to the company's revenues, sources indicated. Meanwhile, new smartphone orders from Sony Ericsson and Dell are expected to also contribute to FIH's overall performance for the year.
source
For 2009, FIH may face another revenue drop due to reduced orders from its major clients Motorola, Nokia and Sony Ericsson, according to the sources The vendors intend to adjust to the changing economic climate by lowering outsourced production, the sources commented.
FIH's financial report for 2008 is scheduled to be available by the end of April this year, according to the company, which declined to comment on any speculation regarding its financial status.
Company spokesman Vincent Tong said that the general slowdown of economies worldwide will have an inevitable impact on individual enterprises. FIH has turned more cautious about capital spending and capacity expansion for the near term, but is also looking for long-term prospects, Tong stated. For the long run, opportunities in the industry supply chain have surfaced such as demand for game console-use wireless modules, Tong added.
In related news, FIH has secured orders from new handset customers in China, but the segment does not contribute significantly to the company's revenues, sources indicated. Meanwhile, new smartphone orders from Sony Ericsson and Dell are expected to also contribute to FIH's overall performance for the year.
source
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