ZTE Posts Second-Straight Loss on Delayed ContractsBloomberg News
ZTE Corp., China’s second-biggest maker of mobile-phone equipment, posted its second-straight quarterly loss due to contract delays and falling handset sales in China.
The net loss of 1.14 billion yuan ($183 million) in the three months ended Dec. 31 compared with net income of 991.6 million yuan a year earlier, based on figures derived from 12-month results the Shenzhen-based company released in a statement today.
ZTE said in a preliminary report on Jan. 20 that it would have a loss for the period because of delays in contracts and international projects. The full-year loss of 2.84 billion yuan reported today compared with its January forecast of a loss between 2.5 billion yuan and 2.9 billion yuan.
Sales in the fourth quarter fell 16 percent to 23.5 billion yuan.
ZTE fell 0.1 percent to close at HK$13.96 in Hong Kong trading before the earnings announcement. The shares have gained 6.9 percent so far this year.
The company reported a net loss of 1.95 billion yuan in the third quarter.
Huawei Technologies Co. is China’s largest maker of mobile-phone equipment.
— With assistance by Edmond Lococo