Huawei profit down 22 percent in 1H, blames economy

Summary:Chinese telecoms giant says challenging market and economic landscape caused lower operating profit of US$1.4 billion for first half of 2012 over last year, despite 5.1 percent rise in sales to US$16.07 billion.

Huawei Technologies says the global economic situation and telecom equipment market remains a "significant challenge", but it continues to maintain robust growth momentum.

In a statement Tuesday, the Chinese firm announced a 22 percent drop in profit for the first half of 2012 to 8.79 billion yuan (US$1.4 billion) from last year. This was despite a rise in revenue of 5.1 percent to 102.7 billion yuan (US$16.07 billion).

"In 2012, Huawei outlined our new pipe strategy and we will focus even further on this approach moving forward to ensure more effective growth and greater efficiency to drive continued improvements in operating performance," said Meng Wanzhou, CFO of Huawei.

She added that the company was relatively optimistic in its operating performance and profitability for the remainder of 2012.

Topics: Tech Industry, China, Hardware, Networking

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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