Foxconn Int`l warns of widened H1 losses
2010-06-30 14:15:57Source:People′s Daily OnlineAuthor:
Foxconn International Holdings Ltd., the world's biggest contract manufacturer of mobile-phones, warned yesterday that the company will suffer increased losses in the first half of 2010.
Falling product prices, changes in product mix and higher depreciation expenses lead to higher losses compared with the previous year, company officials said without mentioning whether the hike of labor costs is a reason.
The company, which makes handsets for Nokia, Inc. and Motorola, reported a first-half net loss of 18.7 million U.S. dollars in 2009. However, from July to December 2009, Foxconn recorded as high as 57 million U.S. dollars of net profits.
Analysts say that the warning revealed a huge slump in the first half of 2010.
Since the beginning of this year, over 10 employees in Foxconn's manufacturing complex in Shenzhen committed suicide. The company announced a wage hike of over 100 percent after the tragedies.
The share prices of Foxconn International closed at 5.45 Hong Kong dollars, reflecting a decline of over 50 percent in 2010.
Falling product prices, changes in product mix and higher depreciation expenses lead to higher losses compared with the previous year, company officials said without mentioning whether the hike of labor costs is a reason.
The company, which makes handsets for Nokia, Inc. and Motorola, reported a first-half net loss of 18.7 million U.S. dollars in 2009. However, from July to December 2009, Foxconn recorded as high as 57 million U.S. dollars of net profits.
Analysts say that the warning revealed a huge slump in the first half of 2010.
Since the beginning of this year, over 10 employees in Foxconn's manufacturing complex in Shenzhen committed suicide. The company announced a wage hike of over 100 percent after the tragedies.
The share prices of Foxconn International closed at 5.45 Hong Kong dollars, reflecting a decline of over 50 percent in 2010.
