November 11, 2016

Foxconn's operating profit is up on as increased deployment of robots and automation improves cost control

Key iPhone assembler Hon Hai Precision Industry, also known as Foxconn Technology Group, benefited from cost control on growing use of automation in its factories, but its bottom line dropped due to smaller gains in non-operating income.

In the quarter to September, Foxconn reported sales of 1.07 trillion New Taiwan dollars ($33.57 billion), up 0.91% on the year. Operating profit rose 10.33% year-over-year to NT$42.1 billion, but net profit fell 8.51% to NT$34.63 billion.

Foxconn has been working aggressively to expand automation on its Chinese campuses, including the iPhone assembly facility in the central Chinese city of Zhengzhou.

Foxconn Chairman Terry Gou told the Nikkei Asian Review on Nov. 5 that Foxconn has now deployed 60,000 robots on its production lines.

"We plan to increase that number by 20% to 30% every year," Gou said. "We've already had some lights-off facilities [due to large-scale deployment of robots] and we will have more of them in the future."

Despite a double-digit gain in operating profit, the bottom line suffered from factors not directly related to the company's main line of business.






SOURCES Nikkei

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