cens logo

Hon Hai's 2014 Consolidated Net Income Up to New High of US$4.21 Bn.

2015/04/02 | By Ken Liu

Hon Hai Precision Ind. Co., Ltd. announced making over NT$56.7 billion (US$1.82 billion) in consolidated after-tax net income in the final quarter last year, or NT$3.85 per share, up 66.3 percent quarter on quarter and 33 percent year on year (YoY).

The Q4, 2014 net income helped swell the company's consolidated net income for the whole year to new high of NT$130.53 billion (US$4.21 billion), or NT$8.85 per share, gaining 22.3 percent YoY.

Industry executives ascribe the hefty Q4, 2014  earnings mostly to the thriving market for Apple iPhone 6, for which Hon Hai is a recognized, long-term contracted assembler, the maker's income from foreign exchange transactions not to mention high seasonal effect and the company's improved production efficiency.

The Q4, 2014 earnings exceed the NT$55 billion (US$1.77 billion) previously projected for the Hon Hai, reportedly the world's No.1 contract electronic manufacturer by revenue.

In that quarter, the company also reported new high in gross margin ratio, operating income ratio, and after-tax net income ratio, being 7.27 percent, 4.2 percent and 3.78 percent, respectively.

In the final quarter, the company generated consolidated revenue of NT$1.5 trillion (US$48.36 billion), increasing 57.82 percent quarter on quarter and 13 percent YoY.

The Q4, 2014 revenue helped push up the company's consolidated revenue for 2014 to NT$4.2 trillion (US$135.48 billion), rising 6.6 percent year on year. Gross margin ratio, operating income ratio, and net income ratio for that year were 6.93 percent, 3.4 percent and 3.1 percent, respectively, all showing growths from the previous year.

While the annual revenue rose only a single-digit percentage from a year earlier, the company's consolidated operating income of NT$143.19 billion (US$4.61 billion) throughout 2014 surged 31 percent, suggesting improvement in cost efficiency at the company.

Throughout 2014, the company earned NT$10 billion (US$3.22 million) from foreign exchange transactions.

(KL)