Hon Hai posts record revenues for December 2007
Jan 15, 2008
Thanks to the sharp increase in shipments of personal computers and communication products, Hon Hai Precision Industry Co., Taiwan's largest private-sector manufacturing firm, posted NT$149.3 billion (US$4.59 billion at US$1:NT$32.5) in non-combined sales in December last year with NT$1.24 trillion (US$38.15 billion) in combined sales for the whole of last year, both hitting historic high records.
Poised as the world's largest EMS (electronic manufacturing services) provider, Hon Hai said it would see sales grow 30% year-on-year this year, despite the slump in consuming willingness caused by the impact of the U.S. subprime house loan problem. The company will challenge NT$1.56 trillion (US$48 billion) in non-combined sales this year.
A foreign institutional investor estimated Hon Hai would be able to grab a 5.5% up to 5.6% gross operating profit margin in 2007. Its after-tax earnings and earnings per share would reach NT$85 billion (US$2.61 billion) and NT$13 (US$0.4), respectively in 2007, the highest record ever reached by EMS providers the world over.
With the amazing operating performance, Hon Hai is expected to dole out NT$6 (US$0.18) in dividend per share this year, hitting the highest record since its listing on the Taiwan Stock Exchange in June 1991.
The company attributed its high growth in 2007 sales to the production expansion of its 10-strong plants in mainland China. In addition, the company's major clients, including Dell Computer Inc., Hewlett Packard Corp. and Apple Computer Inc., saw substantial sales growth in sales in 2007, helping Hon Hai snatch continued influx of orders.
Hon Hai's affiliated firms, including Q-Run Technology Corp. and InnoLux Display Corp., also saw substantial growth in sales for December 2007. Q-Run scored NT$12.86 billion (US$395.69 million) in December 2007, up 1% from the preceding month. The company had NT$133.46 billion (US$4.1 billion) in combined sales in 2007. InnoLux posted NT$14.48 billion (US$455.53 million) in December 2007, representing a 2.3% growth from the preceding month.
source & copyright: CENS