Foxconn reports biggest revenue drop in seven years

Apple's main manufacturer Foxconn has reported its biggest revenue drop in seven years, down 18.1% in February year-on-year.

As Reuters reports:

Apple's manufacturing partner Foxconn (2317.TW) reported its biggest monthly drop in revenue in about seven years on Thursday as the coronavirus outbreak continued to play havoc with its business.

The Taiwanese company, which assembles Apple's (AAPL.O) iPhones, saw revenue sink 18.1% in February compared with a year earlier - the biggest monthly fall since March 2013 and the third straight month of decline. It warned the coronavirus epidemic would hit its bottom line in the first quarter.

The report notes that worldwide, manufacturers are struggling to cope with the disruption caused by the coronavirus, including shortages of supplies and parts, as well as travel restrictions and reduced workforces.

The company's revenue fell to just $7.28 billion in February, and its share price has fallen 10% this year. According to the report, Foxconn does not expect to see any growth in the first half of this year and has made a "mild downward revision" from its original guidance.

A couple of days ago, it was reported that Foxconn was hopeful that factories would return to normal output this month, signifying that the worst of the disruption may have passed for the company. If true, the news will prove a welcome relief to both Foxconn and Apple, which relies heavily on the manufacturer for its global supply of products.