Apple supplier Foxconn’s Q4 profit beats estimates

People wear masks to protect themselves from the coronavirus disease (COVID-19) while listening to the annual general meeting at the lobby of Foxconn’s office in Taipei, Taiwan, June 23, 2020. REUTERS/Ann Wang

TAIPEI, March 16 (Reuters) – Taiwan’s Foxconn (2317.TW), the world’s largest contract electronics maker which counts technology giants such as Apple Inc (AAPL.O) among its major clients, reported a fourth-quarter profit on Wednesday that slightly beat market estimates.

Foxconn reported a net profit of T$44.4 billion ($1.55 billion) for October-December, down 3.4% compared with the year ago period.

That compared with the T$43.32 billion average of 10 analyst estimates compiled by Refinitiv.

Revenue fell 6% from a year earlier.

Formally called Hon Hai Precision Industry Co Ltd, Foxconn had expected fourth-quarter revenue to fall between 3% and 15%, citing the impact from a year-long shortage of chips that had disrupted production at companies from Apple to GM (GM.N). read more

On Wednesday it said it expected revenue for the first quarter as well as the year to range between a 3% fall and a 3% rise.

The company on Monday suspended operations in the Chinese city of Shenzhen to comply with the local government’s COVID-19 control policies and said it will deploy backup plants to reduce disruption to production. read more

Foxconn said on Wednesday some operations had been restored at its Shenzhen campuses, where the company had both housing and production facilities.

$1 = 28.5700 Taiwan dollars)

Reporting By Yimou Lee and Ben Blanchard; Editing by Sayantani Ghosh and Muralikumar Anantharaman

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