* ZTE Q3 net profit 242 mln yuan
* ZTE net profit Jan-Sep 551.6 mln yuan
* ZTE guided Q3 net profit at 190-440 mln yuan, Jan-Sep net
profit 500-750 mln yuan
(Recasts with profit guidance, adds context, company comment)
By Paul Carsten
BEIJING, Oct 22 China's ZTE Corp
said on Tuesday it would post a net profit for 2013,
swinging from a loss in the previous year as its focus on
cost-cutting and high-margin contracts pays off.
The world's fifth-largest telecom equipment and smartphone
maker in terms of sales did not give a guidance figure for the
full-year profit. ZTE did say its net profit for the first nine
months reached 551.6 million yuan ($90.54 million), in line with
the lower end of its expectations.
ZTE, which competes with Huawei Technologies Co Ltd
, said a slowdown in the global telecoms industry had
dampened profit growth. It was also affected by the Chinese
government's delay in issuing 4G telecoms licences.
ZTE posted a 2.8 billion yuan loss in 2012. On Tuesday, it
reported a 242 million yuan third-quarter net profit, at the
lower end of its own guidance of 190-440 million yuan.
ZTE had forecast a 500-750 million yuan profit for the first
nine months of the year.
The company had based its turnaround this year on
cost-cutting and the roll-out of 4G networks by Chinese mobile
carriers. It also limited the number of low-margin contracts it
ZTE shares closed down 1.72 percent compared to a 1.35
percent drop in the Shenzhen Stock Exchange 100 Index,
ahead of the earnings announcement.
The stock has gained 75.9 percent since the beginning of the
year, while the SZSE 100 Index has risen 1.68 percent.
($1 = 6.0925 Chinese yuan)
(Reporting by Paul Carsten; Additional reporting by Chyen Yee
Lee; Editing by Miral Fahmy)