Huawei expects to report 33% rise in net profit in 2012

Huawei announced that it expects its 2012 global sales revenues to reach US$35.5 billion, an eight per cent year-on-year increase, with a net profit of US$2.4 billion, a 33 per cent increase from the previous year. The January earnings disclosure is part of Huawei’s on-going commitment as a private employee-owned company to be more open and transparent with stakeholders. The 2012 results audited by KPMG will be outlined in the company’s annual report, which will be released in April.

Huawei Chief Financial Officer, Cathy Meng is positive about the industry’s future growth prospects with a projection that overall group revenue will grow 10-12 per cent in 2013.

Continuous innovation focused on customer needs is an important driving force behind Huawei’s growth. The company has cumulatively invested US$19.2 billion R&D over the past 10 years, including a US$4.8 billion investment in 2012, accounting for more than 13 per cent of the year’s revenue.

About 70 per cent of Huawei’s revenue was generated from serving leading telcos, including 45 of the world’s top 50.

Huawei’s Carrier Network business group recorded sales revenues of US$25.7 billion.

Huawei’s Device business group recorded robust sales revenue of US$7.7 billion and achieved breakthroughs in developed markets. Huawei’s Enterprise business group generated sales revenue of US$1.8 billion.

66 per cent of Huawei’s overall revenue was generated outside China.