China's Huawei says revenue down 2.2%

BUSINESS

China's Huawei says revenue down 2.2 per cent so far this year

Published Thursday, October 27, 2022 7:18AM EDT

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BEIJING -- v> Chinese tech giant Huawei's revenue rose in the latest quarter as infrastructure sales helped to offset damage to its smartphone business under U.S. sanctions, according to figures released Thursday.

Revenue in the first nine months of 2022 declined 2.2 per cent from a year earlier to 445.8 billion yuan ($63.1 billion USD), according to the company, the biggest maker of network gear for phone and internet carriers. Based on data released earlier, that suggested third-quarter revenue rose 6.5% from a year ago to 144.2 billion ($19.9 billion USD).

Huawei Technologies Ltd., China's first global tech brand, has struggled since then-President Donald Trump blocked access to U.S. processor chips and other technology in 2019. The company denies American accusations it is a security risk and might facilitate Chinese spying.

Huawei has stepped up development of network technology for autos, hospitals, mines and manufacturing. It says that is less vulnerable to U.S. sanctions.

The company said its profit margin for the first nine months of 2022 was 6.1%, which would be about 27 billion yuan ($3.7 billion). It said that was a decline from the previous year but gave no details.

"The decline in our device business continued to slow down, and our ICT infrastructure business maintained steady growth," said Eric Xu, one of three Huawei executives who take turns as chairman, in a statement.

This year "may prove to be the most challenging" for smartphones and other devices, a separate company statement said. It gave no sales details.

Huawei's auto venture has played a role in five models released by three Chinese automakers. Huawei supplies components and software for navigation, dashboard displays, managing vehicle systems and other services.

Huawei, founded in 1987, says it is owned by the Chinese citizens who make up half of its global workforce of 195,000.

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The Huawei brand logo is seen on a building in the sprawling Huawei headquarters campus in Shenzhen, China, Saturday, Sept. 25, 2021. (AP Photo/Ng Han Guan)