Foxconn Reveals $128-Million Loss After Spate Of Suicides

Foxconn, the manufacturer behind most Apple products, has announced worse-than-expected losses of $128-million for 2010.

The year before, it made $38.6-million profit.

A loss was expected because the company's costs have increased. It had to increase wages and implement a new workers' welfare package following a spate of suicides at its plants in China. And the company admits this year will be a challenge:

Looking ahead to 2011, our alarming setback in 2010 has created a sense of urgency in the organization. We need to change as the market is changing and our customers are changing. We need to take decisive actions to conclude our capacity re-location, optimize our cost structure and return to profitability.

Foxconn is a subsidiary of the Hon Hai Precision Industry Company of Taiwan, the world's largest maker of electronic components. Its plants in China are the country's largest exporter.

Last year, a human rights campaign group in China described Foxconn factories as "labour camps" and detailed widespread worker abuse and illegal overtime. In response, Foxconn increased wages.

Fourteen workers killed themselves during 2010 and there were four attempted suicides.