Hon Hai posts record January revenue, expects stronger-than-usual Q1

Hon Hai Precision Industry Co (鴻海精密) yesterday reported record January revenue and said it expects first-quarter performance to beat seasonal averages in recent years, supported by strong shipments of artificial intelligence (AI)-related products.The world’s largest electronics contract manufacturer, also known as Foxconn Technology Group (富士康科技集團), said consolidated sales for last month totaled NT$730.04 billion (US$23.04 billion), down 15.39 percent from the previous month, but up 35.53 percent from a year earlier, marking the highest January figure on record.The year-on-year surge may have been affected by the Lunar New Year holiday, which fell in January last year but in February this year.By product segment, the company said computer terminal products recorded strong month-on-month growth last month, while smart consumer products declined slightly due to changes in order momentum.Cloud and networking products fell from the previous month because of shipment scheduling, while components and other products also declined. On a year-on-year basis, cloud and networking products posted strong growth on robust demand for AI cloud products, while components and other products benefited from solid shipments of key parts tied to Hon Hai’s core businesses.Smart consumer products also grew on strong order momentum, while computer terminal products saw a slight decline.Looking ahead to the first quarter, Hon Hai said revenue in the fourth quarter of last year reached a record high and that information and communications technology products are gradually entering their traditional low season.However, the company said its outlook for the first quarter of this year is stronger than last month’s expectation, citing continued growth in shipments of AI server racks and stronger-than-anticipated demand for smart consumer products.As a result, Hon Hai said it expects first-quarter seasonal performance to outperform the range seen over the past five years.Shares of the AI server maker and iPhone assembler fell 1.60 percent to close at NT$225.50 yesterday.