Huawei lauds 2012 earnings, predicts strong future
Company expects 2012 global revenues to reach $35.5bn, an 8% year-on-year increase
As China-based telecoms equipment maker Huawei released its 2012 financial performance results the company's Chief Financial Officer, Cathy Meng, announced efficient growth in 2012. Meng said the firm's achievements were due to customer focus, management streamlining and efficiency improvement.
Huawei expects its 2012 global sales revenues to reach $35.5bn, an 8% year-on-year increase, with a net profit of $2.4bn, a 33% increase from the previous year.
"The January earnings disclosure is part of Huawei's ongoing commitment as a private employee-owned company to be more open and transparent with stakeholders," the company said.
The 2012 results audited by KPMG will be outlined in the company's annual report, which will be released in April.
Meng is also positive about the industry's future growth prospects with a projection that Huawei expects its overall group revenue to grow 10% to 12% in 2013.
"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," she said.
"In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services programme."
The company has cumulatively invested $19.2bn into research and development over the past 10 years, including a $4.8bn investment in 2012, accounting for more than 13% of the year's revenue.
Huawei has invested in and developed its Carrier Network, Enterprise and Consumer businesses in an attempt to enhance its information services offerings. About 70% of Huawei's revenue was generated from telecoms operators.
Huawei's three business groups continued to grow. Huawei's Carrier Network division saw sales revenues of $25.7bn; the Device group recorded an intake of $7.7bn; and the Enterprise arm generated $1.8bn.
The company noted that 66% of overall revenue was generated outside China. Among the overseas earnings, the Asia-Pacific region saw $6bn; Europe, Middle East and Africa recorded $12.4bn; and the Americas contributed $5.1bn. The domestic market pulled in $11.8bn.