Head Hon Hai honcho halves annual growth hope

Terry Gou, head honcho at Hon Hai – more commonly known as Foxconn – will be lowering its annual sales growth targets by half because it has been doing so well for itself. In an interview, he said that the figure rests at the 15 percent mark.

After having a 30 percent fixture for over a decade, Terry Gou has decided to cut the figures because it doesn’t need to be as aggressive anymore. Gou confidently boasted to Bloomberg: “How many companies have grown this big and still grow 30 percent? Fifteen percent is also big.”

He’s right, a 15 percent target is still reasonable. According to Hon Hai, Gou will be expanding its efforts abroad and wants to focus on production in the US.

It also wants to enter the biotechnology field which it says is to sustain growth though we suspect it wants to rewire the brains of its worker drones. 

Workers plummeting from the rooftops meant shares plummeted from the rooftops, with stocks down 18 percent on the Taipei trading circle this year. Gou is still confident on revenues: “In these past several months, our revenue has continued to grow, and our staff size has continued to grow. If people all thought Foxconn was bad, they wouldn’t keep giving us orders, and they wouldn’t keep coming to work for us.” 

Terry Gou reckons the future for growth will be in automotive parts and LED kit. He wants to expand on competition with fellow Taiwanese heavyweights such as Compal with increase notebook assembly. He didn’t provide a forecast but did say he needs a holiday. 

Foxconn expects it will match its 30 percent growth targets this year before it makes the cut. Revenues are thought to increase 39 percent to $85 billion.