Foxconn Technology Group reported a quarterly net profit of TWD39.98 billion compared to TWD44.40 billion 2023

As a result of Covid-19 outbreaks in China and a deteriorating profit margin, Foxconn Technology Group’s net income for the fourth quarter decreased by 9.9% year-over-year.

The electronics manufacturer formerly known as Hon Hai Precision Industries Co. said on Wednesday that its net profit for the quarter ending December 31 decreased to 39.98 billion New Taiwan dollars ($1.31 billion) from NT$44.40 billion during the same time a year ago. S&P Global Market Intelligence conducted a survey of analysts who predicted a figure of NT$39.78 billion.

The company’s fourth-quarter sales increased by 3.9% year-over-year to NT$1.963 trillion, due in part to robust server demand in its cloud and networking equipment segment.

In the fourth quarter, the operating profit margin for the electronics manufacturer decreased from 2.75 percent to 2.25 percent.

Foxconn, well-known for manufacturing Apple Inc.’s iPhones, reported that its consumer-electronics business’ fourth-quarter revenue was almost unchanged from the previous year, as the Covid-19 outbreaks disrupted some operations at its Zhengzhou site in central China.

Protests occurred at the world’s largest iPhone manufacturing facility as worker discontent increased over strict pandemic control rules and salaries.

Foxconn said Wednesday that it anticipated its consumer-electronics companies to perform worse in 2023 than it did last year, while it expected the cloud and networking and computing-products businesses to do better this year.

Foxconn said that its revenue for the first two months of 2023 rose 18% year-over-year to NT$1.062 trillion, as operations at its Zhengzhou site returned to normal and the supply of parts for its computing-products sector improved.