Apple supplier Foxconn's Q2 profit up 12% on cloud demand

Apple Inc supplier Foxconn reported on Wednesday a 12% jump in second-quarter net profit, beating market estimates, helped by strong demand for its cloud computing products.

The Taiwanese company, the world's largest contract electronics maker, said net profit for the April-June quarter rose to T$33.29 billion from T$29.78 billion a year earlier. Eleven analysts were expecting on average a profit of T$31.02 billion, according to Refinitiv.

The company, like other global manufacturers, has grappled with a severe shortage of chips that has squeezed smartphone production, and more recently a downturn in major markets amid high inflation and the war in Ukraine. Foxconn shares closed 0.9% higher ahead of the earnings release, versus a 0.7% drop in the broader market. They have risen 5.8% so far this year, giving the company a market value of $50.3 billion.