Zoomlion says to book Q3 loss on weak yuan, supply glut

BEIJING: Major Chinese construction machinery maker Zoomlion Heavy Industry Co said on Tuesday it expects to report a loss in the third quarter due to the weakness in the yuan and a supply glut at home.

Zoomlion expects to report a net loss of between 190 million yuan and 290 million yuan ($30 million to $45.7 million) for the June to September period, compared with a net profit of 100.2 million yuan for the same year-ago period, the company said in a stock exchange filing.

In the first half of this year, Zoomlion also booked a net loss of 309.8 million yuan, in line with its own forecasts.

China's slowing economy has taken its toll the earnings of Zoomlion and rivals Technology Co Ltd and Sany Heavy Industry Co Ltd, as the companies are stuck with a glut of unsold equipment and factories they don't need.