Shanghai, China (4E) – Telecommunications equipment giant Huawei Technologies Co. expects strong profit growth for last year despite challenges in the industry, even as the Chinese firm is still facing scrutiny over transparency issues in the U.S.
Acting chief executive Guo Ping said that the company is expecting a net profit of about $2.4bn for 2012, a jump of 30 per cent from the previous year when the company suffered a sharp drop in earnings.
In 2011, profits dropped 53 per cent compared to 2010, but recovered strongly in the first half of 2012 after a 22 per cent drop in the previous year. Guo did not elaborate on the details that led to the turnaround but said that the company introduced a number of competitive products with its networking gear, storage and communications sectors.
The expected strong figure is a boost for the company, which is currently under suspicion from western countries that it is spying for China’s communist government.
Several U.S. lawmakers have cited Huawei founder and chief executive Ren Zhengfei’s links with the Chinese military, adding that the company could be a threat to the country’s national security. Huawei has repeatedly denied these allegations, although its U.S. sales have suffered due to these reports.