Posted on Thursday, March 31 2011 @ 22:42 CEST by Thomas De Maesschalck
This news comes a bit as a surprise to me, I thought Foxconn would be making a pretty nice profit but the company's latest financial statement reveals it lost $218.3 million last year.
While the company had previously predicted lower earnings amid suicide-related wage increases and welfare costs, the reported figure is still worse than analysts' estimation of around $202 million, which also far outweighs the prior year's $38.6 million profit. Foxconn puts the blame on higher consolidated income tax and increased competition, as well as "cost streamlining actions" -- a reference to the ongoing relocation and expansion plans, which are also the outcome of the Chinese suicides -- that took longer than expected and led to increased spending along with higher manufacturing overhead.
Source: Engadget
