On Tuesday, Foxconn International Holdings Ltd. shares went down significantly. The shares came down because of huge losses that the Company faced in the first quarter of the current year.

Till June 30, the total losses were reported to be $142.6 million, which is quite high as compared to $18.7 million net loss during the same period in the previous year.

Morgan Stanley has told the investors not to buy any more shares of the Company till the situation is under control.

Morgan Stanley experts are hopeful that Foxconn’s second-quarter earnings will be good, but the situation will become better by 2011.

Hon Hai Precision Industry Co., which is one of the main contract manufacturers of cell phone maker Foxconn, came up with its second half total earnings. The net income was below the 14% estimate predicted by analysts.

It is worth noting that 10 employees of Foxconn’s Shenzhen factory committed suicide due to bad working conditions and less pay. After that incident, the Foxconn Group decided to increase the pay package of its workers.

The Company said that it is planning to increase the basic salary of its employees in Shenzhen by October. In June, the Company raised the wages by 30%.

Foxconn Group also manufactures iPhones of Apple, computers of Hewlett- Packard Co., and Sony Corp.’s game consoles.