April 1, 2014 1:00 am JST

Huawei posts 34% net profit gain for fiscal 2013

KEN KUWAHARA, Nikkei staff writer

WUKAN, China -- Huawei Technologies Co.'s net profit rose 34% to 21 billion yuan ($3.46 billion) for the fiscal year ended Dec. 31, thanks to brisk sales of information systems and smartphones.

     Sales grew 9% to 239 billion yuan, according to the results announced Monday. Huawei surpassed Swedish rival Ericsson for the second year in a row to become the world's top manufacturer of equipment for telecommunications companies.

     Sales were particularly buoyant for corporate information systems and consumer products, climbing 32% and 18%, respectively. Growth in the enterprise business was driven chiefly by such Chinese clients as banks, Internet companies and the government.

     Smartphone shipments swelled more than 60% to roughly 52 million units, putting Huawei in third place, behind Samsung Electronics and Apple. Sales in its mainline business, equipment for telecommunications companies, grew 4%.

     Sales rose 14% in China and 9% in Europe, the Middle East and Africa, but edged down 1% in North America and Latin America.

     North American sales declined, according to the company. U.S. congressional and national security officials see Huawei as a potential security threat, worrying about the possibility of espionage and cyberterrorism.