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Tag: Hon Hai Precision Industry Co Ltd

  • Apple provider Foxconn says it’s ‘cautiously certain’ on This autumn, including to discuss over iPhone 14 call for

    Analysts had been debating the call for for Apple’s iPhone 14 fashions amid a backdrop of rampant inflation, emerging rates of interest and fears of an international recession.

    Getty Photographs

    Foxconn, a big provider of Apple, warned Tuesday it’s “cautiously certain” at the outlook for the fourth quarter after document September gross sales.

    The Taiwanese corporate’s feedback upload additional gasoline to the controversy over call for for iPhones within the coming months, given its oversized function in assembling Apple’s flagship software.

    Foxconn stated September earnings totaled 822.3 billion new Taiwan bucks ($25.9 billion), up 40.4% year-on-year and 83.2% upper than August, a per month gross sales document for the corporate.

    That vast earnings expansion was once pushed by means of a “new product release and clean mass manufacturing” in addition to sturdy efficiency of its sensible client electronics merchandise department, which contains its key smartphone trade. Foxconn does no longer identify its consumers, together with Apple, in its income releases.

    Neil Shah, a spouse at Counterpoint Analysis, stated Foxconn’s document earnings got here at the again of “storming call for” for the upper priced iPhone 14 Professional and Professional Max fashions, that have been introduced remaining month.

    Whilst Foxconn maintained its full-year outlook, the corporate stated Tuesday it’s “cautiously certain” at the outlook for the fourth quarter.

    “The dynamics of inflation, the pandemic, and the availability chain nonetheless wish to be intently monitored,” Foxconn stated.

  • Apple inventory dips on file the corporate is bailing on plans to spice up new iPhone manufacturing

    Consumers check out new iPhones at an Apple retailer as iPhone 14 collection pass on sale on September 16, 2022 in Shanghai, China.

    VCG | Visible China Staff | Getty Pictures

    Stocks of Apple fell about 2.6% in premarket buying and selling on a file that the corporate has advised providers to bail on plans to extend iPhone 14 manufacturing. Call for for the brand new fashions did not spike as top as expected, in line with Bloomberg.

    Apple will not purpose to extend manufacturing by means of 6 million devices in the second one part of the 12 months because it had deliberate, in line with the file. The corporate will try to supply 90 million devices as a substitute, which is kind of in keeping with Apple’s forecast and manufacturing from final 12 months, in line with Bloomberg.

    The file additionally impacted Apple provides and producers. Stocks of key chipmaker Taiwan Semiconductor Production additionally fell about 2.3% ahead of the marketplace open. Stocks of Hon Hai, often referred to as Foxconn, have been down about 2.9%. Foxconn builds Apple’s iPhones.

    Call for for the iPhone 14 Professional is upper than for the opposite new telephones, Bloomberg reported, main no less than one Apple provider to shift manufacturing capability from the lower-tier fashions to the top rate model.

    An Apple consultant declined to remark.

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  • Lordstown Motors closes $230 million deal to promote its Ohio manufacturing facility to Foxconn, injecting wanted money days ahead of cut-off date

    Employees set up door hinges to the frame shell of a prototype Staying power electrical pickup truck on June 21, 2021 at Lordstown Motors’ meeting plant in Ohio.

    Michael Wayland / CNBC

    Embattled electrical car start-up Lordstown Motors mentioned Wednesday it has closed a $230 million deal to promote its Ohio manufacturing facility to Taiwanese contract producer Hon Hai Generation Staff, higher referred to as Foxconn.

    Lordstown’s stocks surged greater than 35% in after-hours buying and selling following the inside track.

    The deal to promote the plant, a former Common Motors manufacturing facility, has been noticed as a crucial lifeline for Lordstown, which has run thru just about all the money it raised in a merger with the special-purpose acquisition corporate (SPAC) that took it public in October 2020.

    The events had set a Would possibly 18 cut-off date to finish the deal. Had it now not closed ahead of then, Lordstown would had been out of money and, most probably, out of choices to finish construction of its Staying power electrical pickup.

    Foxconn plans to make use of the manufacturing facility to construct EVs for purchasers beneath contract, together with the Staying power and a brand new low cost style for California start-up Fisker that is anticipated in 2024.

  • Lordstown’s long term is at stake because it burns thru money and faces a a very powerful deal closing date subsequent week

    The Lordstown Motors Corp. Staying power electrical pickup truck sits on degree all through an unveiling tournament in Lordstown, Ohio, U.S., on Thursday, June 25, 2020.

    Matthew Hatcher | Bloomberg | Getty Pictures

    Suffering electrical car start-up Lordstown Motors stated that it is on the right track to start out manufacturing of its Staying power pickup within the 3rd quarter, a few yr later than at the start anticipated. But although it hits that beginning date, the corporate expects to lose cash on each some of the kind of 500 vans it hopes to send by way of yr finish.

    Whether or not Lordstown will live on lengthy sufficient to stand that problem continues to be in query. The corporate’s monetary long term hangs on a deal it struck closing September to promote its Ohio manufacturing unit to Taiwanese contract producer Hon Hai Era Crew, higher referred to as Foxconn. Underneath the deal’s phrases, it should shut by way of Might 18. (The unique phrases required the deal to near by way of Might 14, however the events agreed to a four-day extension, Lordstown stated on Monday.)

    If the deal does not occur – as of Monday morning, it wasn’t carried out – Lordstown shall be required to refund the $250 million in down bills made by way of Foxconn during the last a number of months.

    Money back would expend just about all the aspiring truck maker’s final money. Lordstown had $203.6 million in money as of March 31 and won an extra $50 million from Foxconn in April. The majority of that should be repaid if the deal does not occur.

    If the deal does shut, Foxconn will make a last cost of $30 million, plus an extra cost of about $27 million to reimburse a few of Lordstown’s prices. However that can nonetheless go away Lordstown in need of the money it must ramp up manufacturing of the Staying power.

    Assuming a a success last with Foxconn, Lordstown will most probably have to boost an extra $150 million or so by way of yr finish, Leader Monetary Officer Adam Kroll stated Monday.

    Lordstown reported a internet lack of $89.6 million within the first quarter, or $0.46 according to proportion, as opposed to its $125.2 million loss ($0.72 according to proportion) within the first quarter of 2021. Earnings then and now was once 0, as the corporate is not but delivery cars.

    Lordstown’s operations used up internet $69 million in money within the first quarter, together with $21.9 million in capital bills on tooling and similar prices for its meeting line. Its price of money burn is more likely to boost up because it will get nearer to the beginning of manufacturing of the Staying power.  

    The corporate’s stocks fell greater than 11% to about $1.70 in Monday morning buying and selling.

  • A slate of EV automakers file income this week and can attempt to turn out they may be able to flip hype into manufacturing

    Lucid Motors CEO Peter Rawlinson poses on the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) starts buying and selling at the Nasdaq inventory trade after finishing its trade aggregate with Churchill Capital Corp IV in New York Town, New York, July 26, 2021.

    Andrew Kelly | Reuters

    Traders keeping beaten-up electrical car shares are bracing for a slate of first-quarter income stories, which roll out over the following couple of days.

    The asset staff has had a coarse trip, with the S&P Kensho Electrical Automobiles Index off 25% for the reason that starting of 2022 and down 43% from its February 2021 height. The index tracks EV makers like Tesla and Honda in addition to primary auto business providers like Visteon and Lear.

    One of the best-known shares within the sector have fared even worse. They most commonly declare little to no income, and minimum, if any, manufacturing — and 3 of them file income at some point of two days.

    First up, Fisker

    California-based EV startup Fisker reported after the markets closed on Wednesday that it misplaced $122.1 million within the first quarter, or $0.41 in line with proportion. That used to be a slight leave out: Analysts polled by way of Refinitiv had anticipated a lack of $0.39 in line with proportion.

    Fisker’s stocks fell about 1.5% in after-hours buying and selling following the inside track.

    Fisker has greater than 45,000 reservations for its upcoming Ocean, a swish electrical SUV that can get started round $38,000.

    Fisker does not have a manufacturing unit of its personal; international auto provider Magna World will construct the Ocean at its contract production facility in Austria. Manufacturing is anticipated to begin in November.

    Closing 12 months, Fisker introduced plans for a 2d car, a lower-cost style code-named PEAR that will likely be constructed by way of Taiwanese contract producer Foxconn Generation Staff beginning in 2023. And previous Wednesday, Fisker introduced a 3rd style, a sports activities automotive known as Ronin, deliberate for overdue 2024.

    Fisker mentioned on Wednesday that Magna has begun development Ocean prototypes for trying out, and that it stays on the right track to start out development automobiles for purchasers in November. CEO Henrik Fisker advised CNBC’s Phil LeBeau that Fisker and Magna now plan to triple manufacturing of the Ocean from 50,000 automobiles in 2023 to 150,000 yearly by way of the tip of 2024.

    Fisker has about $1 billion in money available, it mentioned, sufficient to look it in the course of the starting of Ocean manufacturing.

    12 months to this point, the corporate’s inventory is down about 33% as of Wednesday’s shut, and is off 63% from its February 2021 height of $28.50.

    Manufacturing plans at Nikola

    Electrical heavy truck maker Nikola Motors will file earlier than the markets open on Thursday.

    Nikola, founded in Phoenix, is almost definitely excellent recognized for the scandals that resulted in the abrupt departure of founder Trevor Milton in September 2020. Milton is now going through federal fees on allegations that he misled buyers in regards to the state of Nikola’s era — however after paying a agreement to the U.S. executive, his former corporate has moved ahead.

    Below Milton’s successor, CEO Mark Russell, Nikola has simplified its go-to-market plan, solid some key partnerships, and begun manufacturing of the battery-electric model of its Tre heavy truck. An extended-range model of the Tre, powered by way of hydrogen gas cells, is anticipated subsequent 12 months.

    Nikola mentioned Monday it raised about $200 million from a non-public sale of convertible notes. Its present money steadiness — regarded as round $1 billion — and expected investment wishes will most likely stir questions all the way through its income name Thursday morning.

    Nikola’s inventory is down about 27% 12 months to this point via Wednesday, and is off 91% from its prime of $79.73, set in June 2020.

    Readability from Lucid

    Not like Nikola and Fisker, Lucid may have some income to file when it releases its first-quarter effects after the markets shut on Thursday. The Arizona-based maker of luxurious EVs started manufacturing of its first style, the Air sedan, ultimate fall.

    Lucid CEO Peter Rawlinson served as leader engineer on Tesla’s landmark Type S. The Air, a no-compromises, prime efficiency luxurious sedan with an enormous fluctuate, is observed as an up to date take at the concepts that formed the Type S.

    Critiques had been excellent: amongst different accolades, the Air used to be Motor Pattern’s Automobile of the 12 months. However Lucid has struggled to ramp up manufacturing amid ongoing international provide chain disruptions. In February, it lower its 2022 manufacturing goal from 20,000 automobiles to between 12,000 and 14,000 devices.

    The standing of Lucid’s manufacturing ramp-up may be a scorching matter on Thursday’s income name.

    Lucid’s inventory is down about 47% this 12 months via Wednesday, and is off 65% from its February 2021 height of $58.05.