Too bad all the people who know how to run the country are busy driving taxi cabs and cutting hair - George Burns
CHINESE TELECOMS EQUIPMENT MAKER Huawei has preannounced its full year 2012 financial results showing a 33 percent increase in profits from the previous year.
Huawei, which has endured a controversial 2012 as a number of countries barred it from bidding on telecom infrastructure contracts, managed to continue its surge in the telecoms firm rankings by preannouncing its full year 2012 financial results. The firm said that it expects 2012 revenues to hit £22.3bn, a modest eight percent increase from 2011, while profits are expected to be £1.6bn.
As Huawei is trying to promote an image of transparency, the firm said that its accounts are audited by KPMG and will be released in April. The company also said it invested the best part of £3bn in research and development in 2012 alone.
Huawei's early figures suggest that while Alcatel-Lucent and Nokia-Siemens continue to struggle, not only is Huawei increasing business despite Australia, the US and most recently India banning it from telecoms contracts, its profit growth is far outstripping its increase in revenues.
Huawei CEO Cathy Meng said, "We insist on strictly controlling G&A expenses and allocate more resources to bolster the front line and ensure continuous improvements on customer delivery and service quality.
"In addition, Huawei continued its ongoing management transformation, raising combined operating efficiency with an integrated financial services programme."
Huawei also said that most of its revenue is generated outside China, with the EMEA region contributing over a third of its sales, while the Americas account for less than 15 percent.
The firm said it expects revenue to grow between 10 and 12 percent in 2013. µ
Sign up for INQbot – a weekly roundup of the best from the INQ