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Foxconn post $218.3 million loss

Foxconn International Holdings have posted a full year net loss which was larger than many analysts estimated as costs increased and sales dropped. Shares have also fallen.

The net loss was $218.3 million, 3.06 cents a share, compared with net income of $38.6 million in 2009. The mean estimate of seven analysts surveyed by Bloomberg was for a net loss of $202 million.

The stock fell 5.5 percent to HK$4.62, headed for the lowest close in almost two years.

Foxconn increased salaries last year after an array of suicides prompted clients to investigate their working conditions. Apple were among the most visible at the time, which forced Foxconn to take action.

The Hong Kong unit is selling the Taiyuan, China unit to its parent to help reduce fixed costs. Foxconn said “We need to take decisive actions to conclude our capacity relocation, optimize our cost structure and return to profitability.”

Sales at Foxconn fell to $6.63 billion from $7.21 billion in 2009, according to the statement issued.

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