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Industrials

UPDATE 1-China Railway sees big loss on Saudi rail project

* Stock to resume trading on Tuesday

* Sees material impact on its Q3 results

* Says in negotiations on compensation with the owner (Adds details and share price)

HONG KONG, Oct 25 (Reuters) - China Railway Construction Corp 601186.SS1186.HK said on Monday it expected to lose about 4.15 billion yuan ($623.3 million) on a new Saudi Arabian railway for Muslim pilgrims.

Costs on the A1-Mashaaer Al-Mugadassah metro light rail project, which is scheduled to start operation on Nov. 13, would exceed the company’s estimate, it said in a statement.

The loss “is expected to have a material impact on the company’s profits for the third quarter,” the statement said.

The company will continue to negotiate with the owner on compensation issues, it added.

For a company statement, please click here

Trading in China Railway is expected to resume on Tuesday after being suspended on Monday pending price sensitive statement.

The stock has risen about 13 percent since July, lagging a 17 percent gain on the broader market .HSI. ($1=6.658 Yuan) (Reporting by Alison Leung; Editing by David Cowell)

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