HONG KONG Jan 23 Foxconn International Holdings
Ltd (FIH), the world's biggest contract maker of
cellphones, said it expected to record a net loss in 2012 as a
result of lower demand from some of the group's major customers.
FIH, which traditionally assembles products for key clients
including Nokia Oyj, but not Apple Inc, has
struggled in recent years as many of its customers' order books
Its parent, Foxconn Technology Group's flagship unit Hon Hai
Precision Industry Co Ltd , declined to comment in
November on brokerage reports saying FIH may have taken on some
production of Apple products.
In a statement to the Hong Kong stock exchange on Wednesday,
FIH said its net loss for the second half of last year was
expected to be smaller than the group's first-half net loss
which came in at $226.07 million, its worst ever first-half
For statement, click here
Reporting that loss in August, FIH gave a cautious outlook
for its business, saying price competition has led to narrowing
margins among mobile phone vendors fighting for market share.
FIH warned at the time that uncertainties in global handset
demand were dimming its prospects and said management would
focus on cutting costs in the handset sector.
Shares in FIH, which fell 25 percent in 2012 to record their
third successive annual loss, are expected to take a hit when
they open in Hong Kong on Thursday.
The stock closed down 0.8 percent on Wednesday, lagging a
0.1 percent drop in the benchmark Hang Seng Index.
(Reporting By Anne Marie Roantree; Editing by Daniel Magnowski)