SINGAPORE, Oct 13 (Reuters) - Chinese heavy equipment manufacturer Zoomlion has begun a gradual recovery from a punishing downturn, it said on Thursday, even as it announced widening net loss for the first nine months of the year.
China’s massive construction boom initiated by a $644 billion government stimulus package announced in 2008 had spurred heavy equipment makers to produce more equipment, but slowing economic growth has resulted in a glut of unsold machinery.
Zoomlion Heavy Industry Science and Technology Co said its net loss for the first nine months of the year is expected to widen to between 787 million yuan ($118 million) and 812 million yuan, from 518 million yuan a year earlier.
However, the last three months of that period are likely to show a net profit of between 25 million yuan and 50 million yuan, against a loss of 208.4 million yuan in the same quarter last year.
The results for the nine months to end-September were negative largely because of decreasing revenue from the construction machinery sector and foreign exchange fluctuations, it said in a filing on the Hong Kong stock exchange. ($1 = 6.6685 Chinese yuan renminbi)
Reporting by Lee Chyen Yee and Meg Shen; Editing by David Goodman