The Titan From Tucheng Move over, Flextronics. For years, the Singapore giant claimed the top spot among the contract manufacturers that churn out laptops, printers, cameras, and all manner of electronic gadgets for the likes of Hewlett-Packard (HPQ ), Apple (AAPL ), and Dell (DELL ). But a new champion is sweeping past Flextronics International Ltd. (FLEX ) to claim the world title of No. 1: Hon Hai Precision Industry Co., a low-profile Taiwanese company based in the gritty Taipei suburb of Tucheng.In the cutthroat world of Taiwan's electronics makers, Hon Hai is a rarity: It's a profit machine. Most Taiwanese companies these days enjoy healthy sales growth but suffer from anemic earnings, because of relentless pressure from customers to cut prices. But even as Taiwanese blue chips such as Quanta Computer Inc. and Compal Electronics Inc. have struggled, Hon Hai has thrived. The company ranks No. 2 on this year's BusinessWeek IT 100. That makes it four straight years in the top 10, a performance matched only by fearsome Dell Inc. It booked sales of $16.2 billion last year, up 34%, and profits increased 18%. Although its margins are shrinking, Hon Hai remains well ahead of rivals, and its stock price is up 38% in the past year, compared with a scant 1% rise in the Taiex Taiwanese electronics index. "In Taiwan, there is no comparison with Hon Hai," says Tony Tsai of Taiwan Ratings Corp., a Taipei agency... http://yahoo.businessweek.com/magazine/content/05_25/b3938625.htmI just found this article about "Hon Hai Precision Industry Co." as part of the Business Week Online "Info Tech Top 100" listing. I still like FLEX but I am also interested in other companies that are outt here that may be doing better...JT :-)
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