March 8, 2017 / 1:19 AM / 2 years ago

ZTE falls to annual loss over U.S. sanctions case, sees better first-quarter

FILE PHOTO - The company logo of ZTE is seen through a wooden fence on a glass door during the company's 15th anniversary celebration in Beijing April 18, 2013. REUTERS/Barry Huang/File Photo

HONG KONG (Reuters) - Chinese telecoms equipment group ZTE Corp (0763.HK)(000063.SZ) said on Wednesday it expected to post a loss in 2016, hit by fines it is paying to settle a U.S. sanctions case.

It estimated a preliminary full-year loss of 2.36 billion yuan ($342 million) for 2016 compared with a profit of 3.21 billion yuan in the previous year.

But it also said it expects first-quarter profit could rise more than 20 percent as revenue from carriers’ networks and consumer business has increased.

Preliminary net profit for the January-March quarter is to set to come in between 1.15 billion yuan and 1.25 billion yuan ($167 million-$181 million), a rise of 21 percent to 32 percent against the same period a year earlier.

The company has agreed to pay $892 million and plead guilty to criminal charges for violating U.S. laws that restrict the sale of American-made technology to Iran and North Korea.

Reporting by Donny Kwok; Editing by Edwina Gibbs

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