Foxconn International loss balloons at $143mln

Sales rose to $3.23bln from $3.16bln despite Nokia's reduced phone orders behind falling demand for smartphones.

Foxconn International Holdings Ltd., the world’s biggest contract maker of mobile-phones, said its first-half loss widened after the company increased research spending to attract orders and average selling prices declined.
The net loss was $142.6 million, or 2 cents a share, compared with of $18.7 million, or 0.26 cent, a year earlier, Foxconn said in a statement to the Hong Kong stock exchange on Monday. Sales rose to $3.23 billion from $3.16 billion.

Foxconn, the worst-performing stock in Hong Kong’s benchmark Hang Seng Index this year, raised research spending 27 percent and cut prices to win new handset orders and reduce its dependence on its biggest client, Nokia Oyj. The Finnish company has lost users to rivals including Apple Inc., after falling behind in the market for high-end smartphones.

“The company is getting some new customers, but the contribution is still small,” said Alen Lin, who rates Foxconn shares “hold” at BNP Paribas SA in Hong Kong. Foxconn has gained sales from customers including Samsung Electronics Co. and LG Electronics Co., Lin said.

View the full story in Bloomberg.