Huawei Technologies, China’s largest telecommunications equipment provider, saw a 22% decline in first-half operating profit amid weakening demand in an ailing global economy, The Wall Street Journal reported. While operating profit fell to US$1.38 billion, revenues increased 5.1% to US$6 billion, the company reported. “The telecom industry is seeing sluggish growth in 2012 owing to the global economic downturn, which has caused customers to reduce investments while the competition in this industry remains fierce,” said Huawei spokesman Scott Sykes. Huawei is not the only firm struggling to weather the industry’s gloomy business prospects. Last week, Sweden’s Ericsson (ERIC.NASDAQ), the world’s largest telecommunications supplier, reported a 64% decline in its second-quarter earnings, while French Alcatel-Lucent (ALU.NYSE) said it is uncertain about achieving its 2012 earnings target.
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