* Full-year net loss seen at 0.73-0.85 yuan per share
* Compares with net profit of 2.06 bln yuan in 2011
* Blames delays in contract renewals and int'l projects
* Expects renewed profitability in Q1 2013
SHANGHAI, Jan 20 China's second-largest telecom
equipment maker, ZTE Corp. , warned of a net
loss of up to 2.9 billion yuan ($466.58 million) for 2012 due to
non-renewed contracts and project delays.
ZTE's operating income declined 18 percent year-on-year in
the fourth quarter due to delays in the extension of system
contracts and several international engineering projects, the
company said in a preliminary earnings statement on Sunday.
The projected net loss for full-year 2012 is between 2.5
billion and 2.9 billion yuan, equivalent to 0.73 to 0.85 yuan
per share. That compares to a net profit of 2.06 billion yuan in
The firm's gross profit margin in the fourth quarter fell
seven percentage points compared to a year earlier, largely due
to low-margin contracts in Africa, South America, Asia and
within China, the statement said.
Full-year operating income fell "slightly," year-on-year in
2012, the company said, without providing a specific figure.
ZTE expects to return to profitability in the first quarter
of this year, due in part to its sale of Shenzhen ZTE NetView
Technology Co., Ltd., which generated investment income between
820 million and 880 million yuan.
But the company cautioned that its prediction about
first-quarter earnings is subject to change based on risk
factors including macroeconomic conditions, fierce competition
in the telecom sector, and uncertainty about costs.
ZTE's shares closed on Friday at HK$ 14.76 after losing 46
percent in 2012.
($1 = 6.2154 Chinese yuan)
(Reporting by Gabriel Wildau; Editing by Louise Heavens and