Huawei doubles profit in 2009
Confirms second place in market and expects 20% revenue growth this year
Published: 31 March, 2010
READ MORE: Financial | Huawei Technologies
Last year, Huawei managed to grab second place in the telecoms infrastructure market for one quarter, this year it is almost certain to take that position for the full year. It announced an impressive set of results for its fiscal year 2009, with a 19% year-on-year increase in revenue despite the recession.
This revenue rise, to CNY149.1bn ($21.8bn), was actually far slower than in 2008, when the vendor enjoyed over 33% growth. Net profit more than doubled in 2009 though, from CNY7.8bn to CNY18.3bn. Huawei credited cost control measures and exchange rate gains, as well as improved business in higher margin areas, with this leap. Excluding the effects of exchange rate fluctuations, the net profit figure would still have risen by 26.5%.
"In high growth markets, Huawei grew fast due to the deployment of 3G networks in China as well as rapid development of the mobile market in India," noted CEO Ren Zhengfei. "In developed markets, we continued to expand cooperation with leading European operators, while operators in the United States, Japan and Australia are recognizing our unique values."
He expects revenue to rise by about the same amount in 2010, forecasting a 20% upturn in 2010, "driven by increased deployments of mobile and fixed broadband networks, further take-up of customized smart devices, and higher demand for professional managed services".
According to the latest figures from research group Gartner, Huawei had 14.2% share at the end of 2009, up from 11.5% a year before and about the same as Nokia Siemens.
Huawei's compatriot, ZTE, has sacked its president of six years, Yin Yimin, and replaced him with senior VP Shi Lirong. The firm said Yin had been under "heavy" work pressure, and his future role is unclear, though he will keep his board seat. The new head has headed up ZTE's global sales team, the biggest source of its recent expansion, since 2007.
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