February 20, 2018 / 10:50 AM / 4 months ago

Foxconn unit FIH Mobile expects to post up to $525 million loss for 2017

HONG KONG (Reuters) - Mobile handset maker FIH Mobile Ltd said on Tuesday that it expected to swing to net loss of up to $525 million for 2017 due to costs relating to a new business and loss arising from the impairment of its investment portfolio.

FIH Mobile, a subsidiary of the world’s largest contract electronics manufacturer Foxconn, said generally lower gross margins also led to the loss, compared with a profit of $136.2 million a year earlier. Taiwan’s Foxconn is formally known as Hon Hai Precision Industry Co.

The mobile handsets maker had already warned in November that it expects to post a net loss for 2017.

FIH Mobile said on Tuesday it estimated its 2017 turnover to exceed $12 billion, compared to $6.2 billion a year ago. It gave no further details.

Full-year impairment loss of its investment portfolio is estimated at $215 million, the company added. It has not said when it will release detailed financial results for 2017.

Before the loss announcement, FIH Mobile shares ended up 2.3 percent on Tuesday, compared to a 0.8 percent fall for the benchmark Hang Seng Index

($1 = 6.3438 Chinese yuan renminbi)

Reporting by Twinnie Siu; Editing by Muralikumar Anantharaman

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