Manufacturer says global economic situation and telecom equipment market remains a significant challenge
Huawei’s operating profit fell by a fifth in the first six months of 2012, citing the continued “significant challenge” posed by the global economic situation and telecom equipment market.
Operating profit was CNY8.79 billion (£887 million) with the operating margin at 8.6 per cent, an increase of 20.3 from the second half of 2011 but a decrease of 22 per cent from the same six month period last year.
However, Huawei said its sales revenue increased 5.1 per cent from a year ago to CNY 102.7 billion (£10.36 billion).
Huawei chief financial officer Meng Wanzhou said: “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.
“We are relatively optimistic about our operating performance and profitability for the remainder of 2012.”
Huawei said that in the first half of the year, its three business groups achieved considerable progress in technological innovation and market expansion, further consolidating the company’s position as a leading global ICT solutions provider.
It added that it has stepped up its move towards greater openness and transparency and will continue to focus on improving the business ecosystem to enhance its globalisation and localisation capabilities.