updated 11:55 am EDT, Thu March 31, 2011
Foxconn announces larger than expected loss
Foxconn International Holdings, a unit of the Foxconn Technology Group that builds numerous electronics devices, including Apple's iPad, has posted a much larger net loss, at $218.3 million, for 2010 than analysts predicted. This was due to increased costs and lower sales, and resulted in falling shares. In 2009, the company posted a net income of $38.6 million.
The mean estimate from seven analysts talking to Bloomberg was a loss of $202 million. The stock is the lowest it has been in almost two years.
The company had to issue two raises to its ever-growing workforce, and faced much scrutiny as a result of worker suicides at its factory.
"We need to take decisive actions to conclude our capacity relocation, optimize our cost structure and return to profitability," Foxconn said on Thursday, though it didn't say how this would take place.
Despite its primary reputation as a contractor for Apple manufacturing, Foxconn is the largest assembler in the technology field and handles many of the major companies. Its emphasis on sheer output and low prices has drawn criticism for leading to employees working excessive and sometimes unpaid overtime, the use of teenage labor, and low overall pay.