Foxconn International: Expects Significant Decline in 1st Half Net Profit

HONG KONG -(Dow Jones)- Contract mobile phone maker Foxconn International Holdings said late Friday it expects a significant decline in its first-half net profit, due to higher operating costs, changes in product mix, and increased investment spending.

The blue-chip company said in June it expects its gross profit margin to fall this year because of a price war, as well as higher costs and corporate taxes in China.

The Taiwan-based company said it will continue to migrate its production facilities to low-cost sites internationally and invest aggressively in automation to minimize the decline in its gross profit margin.

Foxconn had net profit of US$324.0 million in the first half of 2007.

-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 16th August 2008