Global contract sales of Huawei Technologies, China's largest telecoms gear maker, jumped 46 percent in 2008 to $23.3 billion, the China Business News reported.

Huawei Technologies Co Ltd [HWT.UL] also forecast sales of more than $30 billion in 2009, the newspaper said on its website (www.china-cbn.com), citing an internal Huawei email dated Jan 2.

Huawei normally announces only contract sales, while actual sales average about 72-75 percent of that figure, according to the report.

"Looking into 2009, our global sales will exceed $30 billion," Chairman Sun Yafang was quoted as saying in the email to Huawei employees.

"The global economic situation is very complicated, offering both challenges and opportunities," said Sun.

Over three quarters of Huawei's sales come from international markets, where it and smaller rival ZTE have been expanding rapidly, taking market share from global giants such as Nokia  and Qualcomm with aggressive pricing.

Without giving specific numbers, the paper said 15 percent of the staff at the company's headquarters in China would be transferred overseas, while another 5 percent would be laid off.

Huawei's net income rose 31.6 percent in 2007 to $674 million, however its operating profit margin has fallen steadily from 19 percent in 2003 to only 7 percent in 2007.

The privately held company, based in Shenzhen, started its push abroad in developing markets in Africa and Asia, but in recent years has targeted mature markets in North America and Europe.

Source:Reuters