Huawei profits tumble as global economy falters

Huawei said that although sales revenue for the period increased 5.1 per cent from the same time last year to 102.7 billion yuan (£10.4bn), operating profits tumbled 22 per cent to 8.79bn yuan (£886m), thanks to the slowing global economy which hampers industry growth.
In an e-mailed statement generated by Huawei, Operating profit in the first six months was 8.79 billion yuan ($1.4 billion), while the revenue gained 5.1 percent to 102.7 billion yuan.
A spokesperson had the following statement: The telecom industry is seeing a sluggish growth in 2012 owing to the global economic downturn, which has caused customers to reduce investments while the competition in this industry remains fierce. This has resulted in the operating profit in 2012 H1 being lower than that in 2011 H1.

ZTE said this month its first-half profit may have declined as much as 80 percent because of reduced investment income, foreign-exchange losses and delayed network contracts.

Ericsson, the world’s largest maker of mobile-phone networks, last week posted second-quarter profit that missed analysts’ estimates as carriers curbed spending to cope with a slowing economy.
Alcatel-Lucent SA (ALU), France’s largest phone-gear supplier, has predicted it will miss a 2012 profit target.