Hon Hai reports better-than-expected profit

Hon Hai Precision Industry (2317.TSE), the listed arm of electronics manufacturer Foxconn Technology Group, saw third-quarter net income climb 58% to US$1 billion (NT$30.3 billion) as efficiency improved in its Chinese factories, investment losses were overturned and Apple (AAPL.NASDAQ) boosted its manufacturing payments, Bloomberg reported. The results exceeded the US$800 million average profit forecast of 13 analysts compiled by Bloomberg. Net income for the first nine months grew to US$1.98 billion, while parent-level sales grew 6.8% to US$24.3 billion, Hon Hai said in a filing with the stock exchange. Foxconn raised its wages for workers more than 16%, halved the probation period for new workers and increased bonuses at its factory in Zhengzhou, Henan province. However, those increased costs were offset by a reversal of losses on Hon Hai’s planned investment in Japanese electronics maker Sharp (6753.TYO), as well as greater efficiency from making more electronic components in-house.