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Hon Hai Precision Enjoys 62% Revenue Growth in April

2010/05/12 | By Steve Chuang

Taipei, May 12, 2010 (CENS)--The Taiwan-based Hon Hai Precision Industry Co., Ltd., the world's largest EMS (electronics manufacturing service) provider, reported non-combined revenue of NT$153.858 billion (US$4.88 billion at US$1: NT$31.5) for April, sharply up 62.97% from a year earlier and hitting a record high among April revenues, according to the firm.

With the banner April revenue, Hon Hai Precision has posted aggregate revenue of NT$568.631 billion (US$18.051 billion) for the first four months of this year, representing a sharp growth of 52.69% from a year earlier, far higher than chairman Terry Gou's original projection for a 30% growth.

Hon Hai Group's spokesperson Edumnd Ding noted that the shining sales performance in April was mainly fueled by strong shipments of consumer electronics and PCs. By contrast, the firm's shipment of handsets increased only modestly in the month due mainly to clients new models still in production.

More notable is that Hon Hai Precision's revenue performance was obviously impervious to seasonal factors and appreciation of the New Taiwan dollar against the U.S. dollar, mainly thanks to solid shipment of iPad to Apple Inc., institutional investors indicated.

They added that contract orders from Apple for iPad and iPhone S will secure a strong growth drive in Hon Hai Precision's revenue in the second quarter of the year. Some point out that the firm will ship a total of 6.1 million iPads and 43.2 million iPhones this year, and hence improve its gross profit rate and operating income margin to 9.2% and 4.3%, respectively.

Also, the firm's shipments of notebook PCs and LCD TVs are estimated at 5.9 million and 9.1 million units, respectively, this year, and at 17 million and 16.5 million in 2011.