*

Q1 net profit T$22.01 bln vs T$29.31 bln analysts'

forecast

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Foxconn expects Q2 revenue to grow significantly

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Reaffirms commitment to Sharp, saying "worst is behind"

(Recasts, updates comments throughout)

By Yimou Lee and Faith Hung

TAIPEI, May 14 (Reuters) - Apple ( AAPL ) supplier

Foxconn said on Tuesday it remained confident about

strong AI server demand this year driving revenue, and pledged

to stand by Japan's Sharp after taking a large, profit-impacting

writedown last year.

Foxconn, the world's largest contract electronics maker and

Apple's ( AAPL ) top iPhone manufacturer, said on an earnings call it

expected flat consumer electronics demand, but reiterated it saw

significant growth in 2024 revenue given the artificial

intelligence (AI) applications boom.

"The visibility for this year has improved compared to in

March, mainly thanks to strong AI server demand," company

spokesman James Wu told a post-earnings conference call,

pointing to a better business outlook but without providing

detailed numbers.

Foxconn said it expects revenue for the second quarter to

grow significantly from a year earlier, broadly in line with

previous guidance, with revenue for smart computer electronics

likely to be flattish.

It also forecast demand for consumer electronics to be flat

this year. It does not provide numerical guidance.

For the first three months of 2024, Foxconn reported a 72%

rise in profit coming off a low base from the same period a year

earlier, but the growth was lower than expected.

Apple's ( AAPL ) quarterly results and forecast beat modest

expectations this month, and CEO Tim Cook said revenue growth

would return in the current quarter.

In a separate statement, Foxconn, whose earnings took a hit

last year from a T$17.3 billion ($533.9 million) writedown

related to its 34% stake in Sharp Corp ( SHCAF ), said it was

committed to the Japanese electronics maker, describing it as an

"important asset".

"The worst is behind Sharp. Its future only gets better from

here," Foxconn Chairman Young Liu said, adding that the Japanese

company's Sakai factory would be transformed into an AI data

centre.

Liu did not appear on the earnings call. Foxconn said he was

in Europe on a business trip, but did not give details.

The Taiwanese company, the world's largest contract

electronics maker, said net profit for the January-March quarter

rose to T$22.01 billion from T$12.8 billion in the same period a

year earlier, when earnings were hit by the Sharp writedown.

While Foxconn's quarterly profit missed the T$29.31 billion

forecast by analysts, it was the firm's third consecutive

quarterly profit rise.

In the first quarter, consumer electronics including

smartphones accounted for 48% of its revenue while cloud and

networking products, including servers, contributed 28%.

The company, formally called Hon Hai Precision Industry Co

Ltd ( HNHPF ), said in March that it expected a significant rise in

revenue this year driven by booming AI server demand.

Foxconn also wants to replicate the success it has had

with iPhones with electric vehicles (EV), saying on the call it

expected EV sales to be expanded to markets including Southeast

Asia, the United States and Europe, though it did not provide a

time frame.

Wu said recent price cuts for EVs have presented an

opportunity for Foxconn, which he said was in talks with some 20

to 30 companies including traditional car makers and start-ups

for possible collaboration.

"That creates opportunities for outsourcing, which is good

for Foxconn," Wu said, referring to the price cuts.

Foxconn's shares have risen 65% so far this year, driven by

its rosy AI outlook, far outperforming a 17% gain for the

broader market.

($1 = 32.4040 Taiwan dollars)