Foxconn: the biggest drop in revenue in the past 7 years

The coronavirus epidemic has had a major impact on the world economy and even the giant Foxconn has experienced the largest annual decline in revenue in recent years.

Foxconn’s facilities in China, which are an important part of Apple’s production process for the iPhone and other products, have been severely affected by thecoronavirus epidemic, resulting in factory closings and a slow return to normal production which could have very negative effects on the balance sheet, as noted in the financial results reported on Thursday.

According to reports from Reuters, in the month of February, Foxconn’s revenue has gone down 18.1% over the same month in 2019, with February 2020 revenue of $ 7.28 billion. The decline on an annual basis is the biggest monthly drop for the company since March 2013, and it is also the third consecutive monthly drop.

For the first half of 2020, Foxconn admitted that it did not expect revenue growth, issuing a “slight downward revision“On his previous predictions of”slight growth“For the current year.

In Tuesday’s investor call, Foxconn President Liu Young-Way said that more than half the normal seasonal workforce had already resumed work at its facilities. The chipmaker would incentivize employees to return to the factories, offering them a free shuttle service, meals and accommodation to get around the transportation problems caused by the virus, as well as monetary incentives.

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