Hon Hai suffers lowest sales since 2011 amid coronavirus outbreak

09, Mar. 2020

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TAIPEI, NNA – Hon Hai Precision Industry Co., the world’s largest electronics contract manufacturer, saw its worst performance in February as sales plunged more than 18 percent to its lowest level in more than eight years.

Battered by the coronavirus epidemic which disrupted international trade and business, the Taiwanese electronics giant made 217.5 billion New Taiwan dollars ($7.2 billion) in group sales, a 18.1 percent drop from a year ago and also its weakest since August 2011.

More alarmingly, February sales fell sharply by 40.4 percent from the previous month, the company reported on its website. For the first two months of this year, sales tumbled 14.4 percent year-on-year.

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Hon Hai Chairman and CEO Liu Young-way told investors at a meeting last Tuesday that all four product categories – consumer electronics, products for corporate clients such as servers and networking products, computing products as well as devices and other items – would suffer a slump in demand in the first quarter of 2020.

As the coronavirus crisis has impacted on factory operations in mainland China, only more than half of its production capacity is in operation to meet seasonal demand in the first quarter, said the chairman, according to a China Times report.

Collectively, overall sales in the first quarter might drop more than 15 percent compared to last year, he said in the report.

For the full-year forecast, the Taiwanese maker would need to revise growth downwards to 1-3 percent from the initial target of 3-5 percent, he said.