Huawei records $2.4bn profit in 2012

Huawei released its preliminary financial performance results for 2012 this week, projecting its global sales revenue to reach $35.5 billion, an 8% year-on-year increase. Net profit is expected to reach $2.4 billion, a 33% increase over the previous year, the firm said.

The 2012 results audited by KPMG will be outlined in the company’s annual reported, which will be released in April, Huawei said.

Cathy Meng, CFO, Huawei, said that she expects overall group revenue to grow by 10% to 12% in 2013, adding that the firm’s success can be attributed to a number of factors.

“We insist on strictly controlling general and administrative expenses while allocating more resources to bolster the front line and ensure continuous improvements on customer delivery and service quality,” Meng said. “In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services programme.”

About 70% of Huawei’s revenue was generated from serving leading telecommunications operators, including 45 of the world’s top 50, the firm claimed.

The carrier network business group continued to lead Huawei’s financial year, generating revenues of $25.7 billion. The device business group, meanwhile, saw revenue of $7.7 billion, recording breakthroughs in developed markets. Huawei’s enterprise business group recorded revenue of $1.8 billion.

Around 66% of Huawei’s overall revenue was generated outside of the firm’s native China, according to the report. The Asia-Pacific region saw revenue of $6 billion, while Europe, the Middle East and Africa recorded $12.4 billion in revenue. The Americas accounted for $5.1 billion, with China recording $11.8 billion in revenue.

Plenty of the revenues go toward investment into better products, the firm said. Huawei has cumulatively invested $19.2 billion into research and development over the past 10 years, including a $4.8 billion investment in 2012, which accounted for more than 13% of the year’s revene, the company claimed.

Huawei has focused on developing a sophisticated communications network infrastructure with these investments, according to the report. The firm has invested in and developed its carrier network, enterprise and consumer businesses, and addressed the challenges and opportunities of big data, it said.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


The free newsletter covering the top industry headlines