Foxconn's Q3 After-tax Net Income up 69% QoQ

Foxconn Technology Group, a major contract assembler of Apple iPhones, announced NT$34.08 billion (US$1.13 billion), or NT$2.3 per dilute share, in after-tax net income in Q3, up 69% from the previous quarter to hit the fourth highest quarterly in earning history.

Industry executives ascribe such promising profit mostly to simmering sales of iPhone 6, which began selling in mid September worldwide, and  the depreciation of the NT-dollar, which contributed NT$3-4 billion (US$100-133.33 million) to the company's earnings.

The Q3 earnings boosted the group's after-tax net income for the first three quarters by 15% year on year to the new all-time high of NT$73.8 billion (US$2.46 billion), or NT$5.01 per diluted share.

The group's Q3 consolidated revenue rose 3.4% year on year and 8.1% from a quarter earlier to NT$950.49 billion (US$31.68 billion), with gross margin ratio, operating profit ratio, and net profit margin ratio of 7.1%, 3.3% and 3.59%, respectively, and the gross margin hitting a seven-quarter high. In the second quarter, its gross margin, operation profit, and net profit margin were 7.05%, 3.18%, and 2.3%.

Foxconn, exclusive assembler of the 5.5-inch iPhone 6, is estimated to see Q4 earnings and revenue this year soar 70% to NT$60 billion (US$2 billion) and 50%, respectively, year on year, mostly thanks to buoyant sales of iPhone 6.

Its 2014 earnings is projected to exceed the NT$100 billion (US$3.33 billion) milestone to hit NT$130 billion (US$4.33 billion), for daily group earning of over NT$350 million (US$11.66 million).

Throughout the first three quarters, the group had consolidated revenue of NT$2.71 trillion (US$90.33 billion), up  3.4% YoY. Gross margin ratio was 6.74%, up 6.21% YoY. Operating profit was NT$80.21 billion (US$2.67 billion), up 24.6% YoY, with operating profit ratio of 2.96%, outperforming 2.45% of 2013.

The group's casing subsidiary, Foxconn Technology Co., Ltd.,  earned NT$2.60 billion (US$86.86 million), or NT$1.9 per diluted share, in after-tax net income in Q3, spiking 90% or so from the previous quarter. It posted (NT$4.29 billion (US$143.20 million), or NT$3.14 per diluted share, in the first three quarters this year, up 4.3% YoY. (KL)