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Huawei expects to post 29% net profit rise 2012
From: Ghana|Adom Business News          Published On: January 4, 2013, 13:00 GMT
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Huawei expects to post 29% net profit rise 2012
Huawei Technologies, the mother company of Huawei Technologies Ghana, said it is expecting to post a rise in profits of $2.4 billion for 2012, which is 29% more than that of 2011.

Acting Chief Executive Officer Guo Ping reportedly told workers in his New Year message that “net profit is expected to rise by around 29% to US$2.4 billion compared to the US$1.86 billion in 2011.”

He also wrote in a memo to staff that revenues are expected to rise from US$32 billion to US$35 billion over the same period.

The rise in revenues and profits comes despite the company's ongoing setbacks in the US and Australia.

Guo did not provide any break down of main source of revenue such as infrastructure, services or handset divisions, but analysts say the rise could be attributed to new projects and increased sales in high-end mobile phone markets such as Japan.

"We should devote our limited energy to specific business objectives, and avoid the impulse to expand business blindly. Managers who expand business blindly must be held accountable,” Guo warned.

Huawei has boosted sales and gained market share in Europe, Asia and Africa (including Ghana), but it ran into a few obstacles last year in the United States and Australia due to national security and cyber espionage concerns.

Rival Ericsson has yet to report its full-year figures, so it is unclear whether the Huawei has surpassed the Swedish giant as the top telecom equipment maker in the world.

In Ghana, Huawei is undertaking a $150million national ICT backbone project, and it is a leading infrastructure, devices, and solutions vendor for all six telecoms operators in the country.

Huawei recently launched its own branded line of smart handheld devices including phones and tablets in Ghana.

The company was recently cited for meddling in Ghana’s politics, but it braved that storm and still remains a major partner of the government and telecom operators in the development of the country’s telecoms and ICT sector.

Huawei was founded in 1987 by Ren Zhengfei, 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.

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