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Restructuring and cost-saving initiatives seems to have turned FIH Mobile (previously Foxconn International Holdings) back to profit in 1H13.
The handset maker reported a net profit of USD 17’66 million for the 1H13, compared to the USD 226.07 million loss during 1H12.

If this keeps up, FIH would be on track to post a net profit for the full year – which would be a giant leap from the loss of USD 316.4 million in 2012.

The company reviews its first half of 2013 by stating:“The increase in profit is mainly attributable to the Group’s improved gross profit margins principally as a result of the corresponding improvement in the Group’s yield and operation efficiency, as well as control of the Group’s cost of sales and general and administrative expenses and optimisation of its research and development resources. Also, no asset impairment loss was recorded during the period (2012: USD 56 million),” The company states.

Looking forward, FIH Mobile has a rather reserved outlook, citing that the global economy still has some recovery to do.

”Customers’ trend of outsourcing also directly affects our business. Market share reshuffling among our customers will continue and it will need time and efforts to develop new customers and new businesses for manufacturing other mobile devices. Orders of new customers will need time to be sizeable enough to boost utilisation significantly”, the company rites in a statement.

Read more: http://evertiq.com/news/32232