Hon Hai profits gain 29% on cost controls.

(From FT Investor (Stories))

Hon Hai Precision Industry, Taiwan's largest electronics parts maker and largest listed private manufacturer, said second-quarter profit gained 29 per cent, beating expectations as its rapidly expanding production network enabled it to keep costs low.

Net income rose to T$5.35bn in the second quarter compared with T$4.75bn in the previous quarter. Net sales reached T$61.4bn, only a slight increase over the T$60.4bn reported for the first three months, but 21 per cent higher year-on-year.

Operating income in the first half fell 0.4 per cent year-on-year, and the operating margin shrank from 4.2 per cent to 3.4 per cent. …