Huawei on track for 10 percent revenue growth in 2013

Reuters News
Posted: Jul 23, 2013 11:14 PM
Huawei on track for 10 percent revenue growth in 2013

SINGAPORE (Reuters) - Huawei Technologies Co Ltd, the world's second largest telecom equipment maker, said on Wednesday it was on track to achieve 10 percent revenue growth in 2013 after posting a 10.8 percent increase in first-half sales.

Huawei also said it expected to generate a net profit margin of 7-8 percent in 2013, compared with about 7 percent in 2012, according to Reuters' calculations. The company did not give other figures in its brief statement.

"Our 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," Huawei's CFO Cathy Meng said in the statement.

"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 Corp, the world's fifth largest telecom equipment maker, this week.

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.

Global rival Ericsson, the world's biggest mobile network maker, also posted a second-quarter operating profit that was well below expectations.

Last year, Huawei reported a 22 percent fall in its first half operating profit due to weak spending in the telecom sector. For the full year of 2012, its net profit rose by a third after clinching new telecom projects and smartphone sales.

(Reporting by Lee Chyen Yee; Editing by Miral Fahmy)