Apple Inc supplier Foxconn reported a 5% rise in first-quarter net profit, largely in line with estimates, as chip shortages, supply chain issues and slow spending for electronics amid COVID-19 lockdowns in China curbed demand.
The Taiwanese company, the world’s largest contract electronics maker, said net profit for the January-March quarter rose to T$29.45 billion ($985.48 million) from T$28.2 billion a year earlier.
Twelve analysts were expecting on average a profit of T$29.76 billion, according to Refinitiv.
The company, like other global manufacturers, has grappled with a severe shortage of chips that has squeezed smartphone production, and more recently a downturn in major markets amid high inflation and the war in Ukraine.
Foxconn shares closed 1% lower ahead of the earnings release, versus a 2.4% drop in the broader market. They have fallen 2% so far this year, giving the company a market value of $48.1 billion.
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