Apple supplier Foxconn's Q2 profit slips 1%, beats forecasts

Apple Inc supplier Foxconn reported on Monday a 1% drop in second-quarter net profit, as global economic woes hurt demand for smart consumer electronics.

The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter slipped to T$33 billion ($1.0 billion) from a revised T$33.29 billion in the same period the previous year.

It was better than an average forecast of T$25.57 billion profit from 13 analysts, according to Refinitiv. Foxconn said it expected revenue for its smart consumer electronics products to slightly decline year on year in the third quarter. That group includes smartphones and makes up about half of Foxconn's total revenue.

Overall revenue for the third quarter would also fall slightly, the Taiwanese company said, downgrading its outlook for full-year revenue to a slight decline from previous guidance for coming in flat.

Foxconn shares rose 1.4% ahead of the results on Monday, compared to a 1.3% fall in the main market. Its shares have risen 10% so far this year.