Taipei: Taiwan-based manufacturing giant Hon Hai Precision Industry Co. has reported its highest ever sales for the month of May, benefiting significantly from robust shipments of smart consumer electronics products, according to industry analysts. The company, known internationally as Foxconn, posted consolidated sales of NT 615.75 billion in May, marking an 11.92 percent increase compared to the same month last year and surpassing the previous record of NT 550.2 billion set in May 2024.
According to Focus Taiwan, while the company experienced a slight month-on-month decline of 3.99 percent in consolidated sales for May, analysts attribute the annual growth to a surge in iPhone shipments. This increase was driven by an annual June 18 online shopping campaign in China, which significantly boosted demand. Over the first five months of the year, Hon Hai's consolidated sales reached NT 2.899 trillion, reflecting a 21.65 percent rise from the previous year, fueled by strong performance in its cloud and networking, electronics component, and computing divisions.
Looking ahead, Hon Hai anticipates a continued year-over-year and quarter-over-quarter growth in sales for the second quarter. However, the company remains cautious about potential impacts from global economic and geopolitical uncertainties, as well as fluctuations in the Taiwan dollar against the U.S. dollar. During its annual general meeting in late May, Hon Hai projected consolidated sales to climb to more than NT 7 trillion in 2025, driven by advancements in information, communications, and artificial intelligence.
In addition to the sales achievements, Hon Hai announced plans to distribute dividends. The company will issue NT 5.8 in cash dividends per share on July 31, based on its 2024 earnings per share of NT 10.79. This dividend per share is the highest since Hon Hai became a public company in 1991, with a payout ratio of 53.75 percent, marking the sixth consecutive year it has exceeded 50 percent. Founder Terry Gou, who holds approximately 1.74 billion shares, is expected to receive NT 10.1 billion in dividends, as the company plans to distribute a total of NT 80.51 billion.