Foxconn subsidiary dips 13% on profit warning

Foxconn subsidiary FIH Mobile fell as much as 13.4 per cent in early trading on Wednesday after it said it expects a $110m loss for the first half following its deal to buy Nokia’s feature phone unit last year.

The Hong Kong-listed contract manufacturer bought the Nokia unit from Microsoft in May for $350m. It also struck a deal to revive the brand with mobile phones and tablets alongside new Finnish group HMD, which is made up of former senior Nokia and Microsoft telecoms executives.

FIH mobile announced the expected loss after the close of trading on Monday and ahead of the public holiday yesterday.

FIH Mobile’s stock had pared losses to be down 12.1 per cent at HK$2.75 a share as morning trade progressed. The benchmark Hang Seng index is up 0.2 per cent.