Supplier Of Nokia And Motorola Expects Earnings Drop

Shares of Foxconn International Holdings Ltd. dropped 6.8% Tuesday morning in Hong Kong after the company announced that it expected a major drop in 2009 earnings.

Foxconn makes handsets for clients like Nokia Corp. (NYSE: NOK) and Motorola Inc. (NYSE: MOT).

The company said that "while there have been encouraging improvements in the group's performance in the second half of 2009, it expects [full 2009 results] ... to show a significant decline in consolidated net profit as compared to that for 2008."

The company went on to say that the drop "was primarily attributable to lower demand and lower pricing for the group's products due to the global economic downturn and more competitive landscape."