While Foxconn did not specify the net loss for the year, it said the loss made in the second half of 2012 was smaller than the first half of 2012.
The overall loss was due to various reasons including lower demand from some of the group's customers, which led to lower sales of the group's products as well as impaired assets. The decline in its gross profit margins was the result of "unfavorable pricing changes and increase in cost."
Last year was a busy one for the Taiwanese contract maker as it continued to be hit by labor-related scandals. In January 2012, Foxconn reached a deal with employees who threatened mass suicide over staffing assignments and transfer policies.
In March, the US Fair Labor Association (FLA) said it found "significant issues" at three of Foxconn's Chinese factories where it conducted inspections beginning in February, including excessive overtime, problems with overtime compensation, and several health-and-safety risks.