Profits drop to €1.1m at Irish arm of Huawei
Profits more than halved to just over €1m last year at the Irish arm of Chinese telecoms giant Huawei, the world's third-biggest smartphone supplier by volume.
According to new accounts just filed, Huawei Technologies Ireland saw its profit for the year to the end of December 2014 fall from €3m in 2013 to €1.1m in 2014 while revenue dropped from €50m to €40.5m.
Although gross profits for the year increased from €7.6m to €9.2m, a near two-fold increase in "other operating expenses" from about €4m to €8m reduced operating profits from €3.5m in 2013 to €1.3m in 2014.
The directors state in their report that turnover fell by 18pc throughout the year "due to some key projects delayed by operator and government, resulting in operating profit and profit after tax decreasing significantly but overall profitability was maintained".
They added: "In 2014 the company sold more profitable products which contributed to higher margins than in 2013.
The other operating expenses have increased due to higher expenditures on research and development activities and foreign exchange loss." The company expects gross profits to "remain consistent" with 2014.
Analysts expect Huawei to be the fastest-growing major smartphone vendor this year.
The upbeat view came after Huawei said yesterday that third-quarter global smartphone shipments jumped 63pc year-on-year to 27.4m handsets.