Huawei targets to achieve $35 billion revenue in 2012 from $32 billion in 2011

Telecom Lead Asia: Huawei Technologies is targeting to achieve more than $35 billion revenue in 2012 from about $32 billion in 2011.

In 2011, Huawei’s sales increased 11.7 percent to 203.9 billion yuan, or about $32 billion.

The world’s No.2 telecom equipment maker is expecting that its net profit will be around $2.4 billion in 2012, rotating and acting CEO Guo Ping said in a New Year message to employees on Friday.

The growth in revenue is due to new projects and increased sales in high-end mobile phone markets such as Japan.

Expected increase in net profit will be 29 percent from 11.6 billion yuan ($1.86 billion) in 2011.

In 2011, Huawei reported sharp drop in net profit a year ago.

Huawei has boosted sales and gained market share in Europe, Africa and Asia. Iran into a few obstacles last year in other markets such as the United States and Australia due to national security and cyber espionage concerns, Reuters reported.

“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 said.

Guo did not provide a breakdown of the revenue figures by business segment. Huawei is expected to announce audited figures in the next few months, although no date has been set yet.

Huawei’ main rival Ericsson’s Q4 net income will hit by SEK 8 billion on account of its 50 percent stake in ST-Ericsson.

The charge includes write down of assets to reflect the current best estimate of Ericsson’s share of the fair market value of the JV, as well as additional charges related to the available strategic options for the future of the ST- Ericsson assets.

According to industry analysts, several telecom equipment vendors including are facing major revenue cuts in Q4 2012. This is mainly due to decline in Capex by mobile operators.

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