ZTE profits despite lower 1H sales

ZTE reported a drop in its first-half revenue, blaming for weaker equipment demand and currency effects.
The Chinese telecom equipment vendor saw revenue decline 11.6% year-on-year to 37.7 billion yuan (€4.6 billion) in the first half, due to lower sales of GSM and UMTS equipment in China and a drop in sales of GSM handsets and data cards across the world. The vendor still turned a profit of 302 million yuan – up 23.5% on 1H12 -, thanks mostly to a one-time gain from the sale of its 81% equity stake in monitoring-systems unit Shenzhen ZNV Technology Co.
ZTE’s sales were also hit by currency fluctuations. An appreciation in the value of Renmenbi against the US dollar resulted in less favorable foreign exchange comparisons with a year earlier, and the firm was affected by depreciation of the Euro, Japanese Yen and some emerging market currencies against the U.S. dollar.