Chinese ZTE Corp to a loss of $1 billion in 2018, despite last quarter reaction

FILE PHOTO: People walk next to ZTE booth at the Mobile World Congress in Barcelona, Spain, February 25, 2019. REUTERS/Rafael Marchante/File Photo

HONG KONG (Reuters) – China’s ZTE Corp has a net profit of 276 million yuan in the fourth quarter as the recovery of expensive AMERICAN sanctions that dragged to a general 2018 loss of 7.0 billion yuan ($1 billion).

The world’s fourth-largest telecommunications-equipment maker by market share, was forced to stop for the most of the business between April and July last year by U.S. sanctions. It paid $ 1.4 billion to lift and reported its worst half-year a loss of 7.8 billion yuan in August.

ZTE’s 2018 loss announced on Wednesday, it was just within the earlier guidance range of 6.2 billion yuan to 7.2 billion yuan, but was deeper than the average estimate of a loss of 6.2 billion yuan as of 10 analysts, according to Refinitiv Eikon data.

The company had expected first quarter net profit of 800 million to 1.2 billion yuan, against a net loss of 5.4 billion yuan year earlier. It reported a profit of 4.57 billion yuan in 2017 before he became embroiled in a paralyzing row with the US government about violations of export restrictions.

ZTE said revenue for the quarter ended in December was 26.7 billion yuan, while its full-year sales fell 21.4 percent to 85.5 billion yuan, against a median estimate of 87 billion yuan, 12 analysts.

Reporting by Sijia Jiang; Editing by Stephen Coates and Alexander Smith

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