China's Huawei Technologies Co Ltd, the world's No.2 telecommunications equipment maker, said on Monday that net profit fell by more than half in 2011 to 11.6 billion yuan ($1.8 billion) on foreign exchange losses and as cut-throat competition in the handset business took a toll.
The company, founded by Chief Executive Ren Zhengfei in 1987, said revenue rose 11.7 percent to 203.93 billion yuan ($32.3 billion), trailing telecoms gear market leader Ericsson, as the Chinese company has yet to make inroads into the U.S. market.
Its gross profit margin fell 6.5 percentage points to 37.5 percent.
Huawei, which has diversified into consumer devices and enterprise networking equipment as its core telecoms gear market has stalled, said the global economic downturn could cause telecom carriers to postpone investments or impose other cost-cutting measures to boost their financial position.
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