Apple supplier Foxconn flags slight growth in core business as third quarter profit beats forecasts

TAIPEI (Reuters) – Taiwan’s Foxconn (2317.TW), a key supplier to Apple Inc (AAPL.O), posted a better-than-expected 23% rise in quarterly profit on Wednesday and forecast slight growth in its core business next year. The latest solid showing from the world’s largest contract electronics manufacturer should ease investor concerns over weak global demand, as it comes on the heels of Apple’s positive earnings forecast for the year-end holiday quarter. But the protracted Sino-U.S. trade war has kept global tech firms on their toes, prompting some to warn of lower sales and cut production. Foxconn Chairman Liu Young-way told an investor conference after the quarterly results that he expects slight yearly growth in 2020 in its consumer electronics and smart devices business, which includes smartphones and TVs, thanks to “a stabilizing global economic situation.” He did not elaborate. Liu also said Foxconn hopes to boost its gross profit to more than 10% in 3-5 years from 6-7% now, citing a “transformation” plan which includes investment in areas including making parts for electronic vehicles and digital health. Foxconn, Taiwan’s tech bellwether and second-biggest company by market value, reported a net profit of T$30.7 billion ($1.0 billion) for the July-September quarter, versus an average forecast of T$27.75 billion by 12 analysts compiled by Refinitiv. The company attributed the profit rise from T$24.88 billion a year earlier to improving margins from subsidiaries including handset maker FIH Mobile Ltd (2038.HK), which returned to profit in the third quarter. “We predict an improving outlook for Hon Hai…