NEW TAIPEI CITY, Taiwan—Taiwan's Hon Hai Precision said today it plans to spin off some units as its founder unveiled measures to battle global sluggishness and falling share prices.

Hon Hai (IW 1000/25), the parent company of Foxconn (IW 1000/611), saw its sales in the quarter ended March 31 fall 19% from a year earlier to Tw$809 billion (U.S. $26.97 billion) as orders from its biggest client, Apple (IW 500/9), slowed.

In reaction to the slowdown, a number of foreign institutional investors have ditched Hon Hai, with their shares falling from 48.1% to 40.2% since early this year. Hon Hai share prices dropped from Tw$88.9 to a low of around Tw$70 last week.

But in a shareholders meeting, founder and chairman Terry Gou called on investors to have faith in Hon Hai, the world's biggest electronics contract manufacturer.

"The recent sell-off is not triggered by our business outlook; there's nothing changed regarding our fundamentals," Gou said, adding that Hon Hai has been working to cut costs and diversify its businesses.

The conglomerate—the world's largest maker of computer components—assembles products for Apple, Sony (IW 1000/39) and Nokia (IW 1000/86).