Foxconn hit hard by pandemic in Q1 but looks to get back on track
All major factories in China have resumed normal operationBy Shawn Knight
A hot potato: As we delve into mid-May, some communities are slowly starting to reopen despite the fact that the virus is far from what could be considered "under control." Are these cities and states making a grave mistake or is it truly time to get back to some semblance of normalcy? We'll find out soon enough.
Foxconn on Friday shared its earnings report for the first quarter of 2020 which highlights the impact that Covid-19 has had on its business.
Revenues declined by 12 percent year-over-year to NT$929.7 billion ($31.2 billion) with gross profit sliding a full 28 percent compared to the same period last year, down to NT$41.814 billion ($1.40 billion). Earnings per share fell by 89 percent year-over-year.
The good news for Hon Hai Precision, investors and consumers alike is that it appears the worst of it is in the rearview. Foxconn, one of the world's largest contract manufacturers, said in its report that all major factories in mainland China have resumed normal operation. Plants in Vietnam are also still operating normally, albeit with heightened epidemic measures in place. Northeast Asia, Southeast Asia, Europe and North American production facilities are all operating at normal levels as well.
The only regions that are still offline are India and Mexico, Foxconn said.
The global pandemic absolutely walloped the economy starting in early March. Manufacturing ground to a halt at an unprecedented scale. Millions were ordered to work from home while millions of others lost their jobs completely.
Masthead credit: Michael Vi, humphery