ZTE Warns of Upcoming Losses

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

China's No. 2 telecom-equipment maker ZTE released preliminary and unaudited results in a statement posted on its website. The company expects to post a net profit loss of 1.9 billion-2 billion yuan ($301 million-$317 million) for its third quarter, which ended Sept. 30. This is in sharp contrast to the 299-million-yuan ($47 million) net profit in the same period last year.

ZTE also expects a loss for the January-September period. In the statement the company said it would lose around 1.65-1.75 million yuan ($262 million-$277 million); that figure was positive for the firm in the first nine months of 2011, at 1.07 million yuan ($170 million).

The company attributed the turn in its fortune to the postponement of a number of foreign projects, plus weakness in the domestic, broader Asian, and European markets. It also mentioned that the U.S. Commerce and Justice departments are currently investigating the firm's activities in Iran. ZTE says it is "lending our cooperation" to the probe.

ZTE is currently China's second-largest telecom-equipment maker in terms of sales, behind China's (and the world's) top such firm, Huawei.  The latter took the leading position after displacing European manufacturer Ericsson this past summer.

Eric Volkman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2057813, ~/Articles/ArticleHandler.aspx, 4/30/2016 9:05:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 23 hours ago Sponsored by:
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASD 4,775.36 -29.93 -0.62%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/29/2016 4:00 PM
ERIC $8.09 Down -0.12 -1.46%
Telefonaktiebolage… CAPS Rating: ****