TAIPEI (Reuters) - Taiwan's Foxconn (TW:2317) posted an almost 90% drop in first-quarter profit on Friday, as the coronavirus pandemic disrupted production and hit demand from Apple Inc (0:AAPL) and other major clients.
But the world's largest contract electronics manufacturer, formally called Hon Hai Precision Industry Co Ltd, said the worst of virus outbreak for the company was over.
"Hon Hai will stabilize in the second quarter," Foxconn said in a statement, adding that it expects revenue will show double-digit growth in the second quarter from the first quarter.
While demand for smartphones remains unclear, other business units are expected to see revenue growth of more than 10% in the second quarter from a year earlier thanks to rising demand from telecommuting and online entertainment, it added.
Foxconn reported net profit of T$2.1 billion (£57.5 million) for the January-March quarter, falling well short of a Refinitiv consensus estimate of T$8.88 billion drawn from 14 analysts.
The virus, which was first reported in China late last year, had at one point suspended most manufacturing activities there. Foxconn said all of its main factories in China have now resumed normal operations.
Foxconn shares closed 1.4% lower ahead of the results on Friday, versus a 0.3% gain for the broader market (TWII). They have lost 15% for the year to date.