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Huawei makes a killing

by on24 July 2013

10 per cent revenue growth

Huawei has announced that it was on track to achieve 10 percent revenue growth in 2013 after posting a 10.8 percent increase in first-half sales.

The company expected to generate a net profit margin of 7-8 percent in 2013, compared with about 7 percent in 2012. The company did not give other figures in its brief statement but it is a private company so does not really have too. Huawei's CFO Cathy Meng said in the statement that its success in the first half of 2013 was mainly driven by the steady growth of the carrier network business, the expansion of the enterprise business, and the fast growth of the Consumer business.

"From these positive indicators, we believe Huawei will generate strong performance and profit margins in the second half of this year," she added.

Huawei's sales growth in the first half was better than the 11.6 percent fall in first-half revenues flagged by competitor ZTE. ZTE, however, said it expects to net profits to increase 23.5 percent due to a series of cost-cutting measures and sales of non-core assets.

Last year, Huawei reported a 22 percent fall in its first half operating profit due to weak spending in the telecom sector.

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