Huawei Technologies Co. forecasts increasing revenue

Huawei Technologies Co., which is based in China and is considered as the second-largest telecom services supplier in the world, made an official statement today, revealing that it projects a rising revenue of about 435.7 billion yuan (70 billion dollars) in 2018. The company said that its net profit increased by 34% in 2013.

As cited by the Financial Times, one of the three rotating Chief Executive Officers of Huawei – Mr. Eric Xu said in the companys statement: “Our significant global presence has helped us achieve stable and continuous growth in the carrier network, enterprise, and consumer businesses.”

Mr. Eric Xu also said that the obstacles on the way “never stopped our efforts to reinforce the protection of our core assets”. He also shared the company believed that the measures taken by it were “effective in protecting our core assets”.

As reported by the Wall Street Journal, Mr. Xu also said: “There are so many discussions outside Huawei, but internally we maintain a calm, business-as-usual atmosphere.”

The company has posted a 245.8-billion-yuan revenue in 2013 due to the fact telecommunication carriers have become more focused on faster fourth-generation mobile networks and corporate customers are trying to improve their private networks. Huawei Technologies Co. also announced that it managed to reach record sales and quite stable net profit in 2013 thanks to enterprise and consumer businesses.

Over the last few years, the companys earnings and revenue have firmly increased, nevertheless a large number of global telecom operators have been unwilling to invest more money on networking equipment. In addition, there were difficulties related to Huaweis expansion in the U.S. amid concerns the company could facilitate the penetration of the Chinese government in US telecoms.

The companys growth is partly due to the fact that its growth engine China accounts for about one-third of the revenue of the company. Huawei posted a 14% increase in its revenue in China from the advance reached in 2012 thanks to rising smartphones sales, while enterprise business revenue increased by about 30%, according to the companys executives.

Although the company managed to prove its strong performance, its business divisions’ profitability was not revealed. At a news conference today, Cathy Meng, the Chief Financial Officer of Huawei, explained that more detailed information about its earnings are planned to be disclosed in the future, but Ms. Meng did not specified when.