Foxconn Handset Unit Returned to Profit in 2011
Foxconn's contract handset manufacturing arm returned to a net profit in 2011, after the company streamlined its operations during the year to better manage production costs.
Foxconn International Holdings, a company under Foxconn Technology Group, reported on Thursday net profit of US$72.8 million for the 2011 financial year ended Dec. 31. This was up 133 percent from the $218 million loss it reported in the previous year.
The company's revenue for 2011 was $6.3 billion, down from $6.6 billion in the previous year.
Foxconn International reports earnings only for the half-year and the full-year.
The company noted that competition with rival suppliers increased. It said it had optimized its manufacturing capacity in various regions by cutting down on excess production, while also reducing investments in certain areas of research and development.
Foxconn International said it can now "operate from a leaner base" in 2012, but forecast that the market could remain volatile, according to statements made in its financial earnings report.
Foxconn Technology Group manufacturers products for some of the world's leading electronics vendors including Apple. The company has faced negative publicity over reports that alleged poor working conditions at Foxconn factories.