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Electronics Production | August 31, 2009

Foxconn with 34% Y-o-Y decrease in turnover for 1H/2009

For the six-month period ended 30 June 2009, the Group recorded a 33.99% year-on-year decrease in consolidated turnover of US$ 3,162 million (2008: US$ 4,790 million).
Loss for the period attributable to owners of the Company was US$19 million compare to a profit of US$142 million for the same period last year. Basic earnings per share for the period was a loss of US0.26 cents.

With global handset shipment reduced from 610 millions units in first six months of 2008 to 520 millions units in first six months of 2009, global handset industry continues to face challenging environment during the first six months of 2009. On top of the continual market share shifts among global OEM brands witnessed since 2007, the industry remains besieged by global markets uncertainties resulting from Sub-prime crisis. The volatile market conditions and changing operating environment has created challenges for all players in the handset supply chain. As the result, the Company has seen lower demand and pricing for the products due to the global economic downturn.



In 2009, the global handset market and global economy could remain volatile. Considering the market environment and demand condition, higher value products’ contribution, new customers’ penetration and capacity rationalization remain challenging for the management. At the same time, due to the dramatic differences in asset valuation, thus, goodwill impairment had also been main reason for the loss resulted in first six months of the Company.

Outlook
Looking forward, the macro uncertainty originated from the Sub-prime crisis continues to cloud transparency. We believe the ability to broaden value-added offerings will be the key to industry competitiveness. We remain hopeful in further market share growing opportunity for 2009 and beyond.

Employees
As at 30 June 2009, the Group had a total of 115,250 (2008: 108,237) employees. Total staff costs incurred during the period of six months ended 30 June 2009 amounted to US$234 million (2008: US$301 million).

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