{"id":29299,"date":"2013-01-05T10:37:55","date_gmt":"2013-01-05T08:37:55","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=29299"},"modified":"2013-01-07T13:18:31","modified_gmt":"2013-01-07T11:18:31","slug":"huawei-expects-2012-profit-gain","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/hardware\/29299\/huawei-expects-2012-profit-gain\/","title":{"rendered":"Huawei expects 2012 profit gain"},"content":{"rendered":"

China’s Huawei Technologies Co Ltd<\/a>, the world’s No.2 telecom equipment maker, expects a 2012 profit gain after reporting a sharp drop a year ago, thanks to new projects and increased sales in high-end mobile phone markets such as Japan.<\/p>\n

Net profit is expected to be around $2.4 billion, rotating and acting Chief Executive Officer Guo Ping<\/a> said in a New Year message to employees on Friday. That would be a rise of 29 percent from 11.6 billion yuan ($1.86 billion) in 2011, based on his forecast.<\/p>\n

Revenue is expected to exceed $35 billion, Guo said. In 2011, sales rose 11.7 percent to 203.9 billion yuan, or about $32 billion.<\/p>\n

Privately held Huawei and its crosstown rival ZTE Corp<\/a> have been expanding their footprint in the global telecom equipment and mobile phone sectors over the past few years.<\/p>\n

While Huawei has boosted sales and gained market share in Europe, Africa and Asia, it ran into a few obstacles last year in other markets such as the United States and Australia due to national security and cyber espionage concerns.<\/p>\n

Slower telecom spending stemming from a weak global economy and stiff competition in the increasingly crowded mobile phone sector have also weighed on the outlook of equipment providers and handset manufacturers.<\/p>\n

“We should devote our limited energy to specific business objectives, and avoid the impulse to expand business blindly,” Guo said. “Managers who expand business blindly must be held accountable.”<\/p>\n

Last October, ZTE, the world’s fourth-biggest maker of mobile phones and No.5 telecom equipment maker, reported its biggest quarterly loss since it was listed due to narrowing margins, project delays and accounting changes in China.<\/p>\n

Guo did not provide a breakdown of the revenue figures by business segment. Huawei is expected to announce audited figures in the next few months, although no date has been set yet.<\/p>\n

Rival Ericsson has yet to report its full-year figures, so it is unclear whether the Chinese company had surpassed the Swedish giant as the top telecom equipment maker in the world.<\/p>\n

Huawei was founded in 1987 by Ren Zhengfei<\/a>, a former People’s Liberation Army officer. Huawei has denied repeatedly any links with the Chinese military and says it is a purely commercial enterprise.<\/p>\n

In a message to employees a year earlier, Ren said Huawei had initiated a system that allows top executives to take turns acting as chief executive, paving the way for a smooth management handover when Ren eventually retires. ($1 = 6.2303 Chinese yuan)<\/p>\n

Related articles<\/h3>\n

Cisco drops ZTE contract<\/strong><\/a><\/p>\n

Huawei, ZTE hit by new wave of accusations<\/strong><\/a><\/p>\n

China rejects U.S. ZTE, Huawei claims<\/strong><\/a><\/p>\n

ZTE stocks hit by US \u201cxenophobia\u201d<\/strong><\/a><\/p>\n

Keep Huawei out of the U.S. \u2013 committee<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

China’s Huawei Technologies Co Ltd, the world’s No.2 telecom equipment maker, expects a 2012 profit gain after reporting a sharp drop a year ago, thanks to new projects and increased sales in high-end mobile phone markets such as Japan.<\/p>\n","protected":false},"author":7,"featured_media":10620,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[25,1635,359],"class_list":["post-29299","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-active","tag-huawei","tag-profit"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/29299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=29299"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/29299\/revisions"}],"predecessor-version":[{"id":29371,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/29299\/revisions\/29371"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/10620"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=29299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=29299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=29299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}