Hon Hai profit slows

Hon Hai Precision Industry (also known as Foxconn; 2317.TPE), the world’s largest contract manufacturer of electronics, reported a 2.9% decline in net income in the second quarter as sales of Apple’s (AAPL.NYSE) iPhone slowed and the company posted writedowns from planned investments, Bloomberg reported. Net income declined to US$421 million, below the US$488 million estimate of 13 analysts surveyed by Bloomberg, while sales climbed 13.7% year-on-year to US$26.74 billion in the second quarter. The drop was mainly due to a writedown from Hon Hai’s planned investment in Japanese TV maker Sharp (6753.TYO) as well as widening losses at affiliated handset maker Foxconn International Holdings (2038.HKG). Sharp has offered to sell the agreed-upon stake to umbrella company Foxconn Technology Group at a cheaper price, Bloomberg reported, quoting a Nikkei newspaper report. The stake will be sold at the average price for Sharp shares, instead of the previously agreed-upon price of JPY550 each.