1/21/2013 11:58:40 AM
ZTE warns of full year loss
ZTE is predicting a full year loss of up to RMB 2.9bn (£293.4m) as it is hit by falling handset sales, delayed progress of global projects and postponed contracts.
The Chinese manufacturer's fortunes contrast to those of rival Huawei, who this morning revealed profits are set to increase by a third. ZTE's loss, for the 12 months to 31 December, is a tumble from the RMB 2.06bn (£208.4m) profit it made during 2011. Fourth quarter sales at the manufacturer are also set to fall by 18%.
In October, the manufacturer launched a new initiative targeted at turning around its financial results. It said those cost control initiatives, as well as an equity sale, would mean it would make a profit for the first quarter of its next financial year. However, it warned: 'The above anticipation is subject to a number of uncertainties, such as macro-economic environment and fierce competition in the industry, as well as the effectiveness of cost control initiatives by the company.'
Author: Graeme Neill