Photo by Michael Roth, RER
Zoomlion's stand at the Bauma show in Munich earlier this year.
Zoomlion's stand at the Bauma show in Munich earlier this year.
Zoomlion's stand at the Bauma show in Munich earlier this year.
Zoomlion's stand at the Bauma show in Munich earlier this year.
Zoomlion's stand at the Bauma show in Munich earlier this year.

Zoomlion Shows Improvement in the Third Quarter

Oct. 14, 2016
Chinese equipment manufacturer Zoomlion has begun a recovery from a recent downturn, the company said, despite a net loss for the first nine months of 2016, according to a Reuters report.

Chinese equipment manufacturer Zoomlion has begun a recovery from a recent downturn, the company said, despite a net loss for the first nine months of 2016, according to a Reuters report. Zoomlion increased production after a $644 billion government stimulus package in 2008, but slowing economic growth has resulted in a stockpile of unsold inventory.

Zoomlion Heavy Industry Science and Technology said its net loss for the first nine months of 2016 is expected to be between 787 million yuan (about U.S. 118 million) and 812 million yuan, up from 518 million yuan for the first nine months of 2015. However, the company expects to post a net third quarter profit of between 25 million yuan (about U.S. $3.7 million) and 50 million yuan compared to a loss of 208.4 million yuan in the same period a year ago.

In a filing on the Hong Kong stock exchange, Zoomlion said results for the first nine months of the year were largely negative because of decreasing revenue from the construction machinery sector as well as foreign exchange fluctuations.

It is believed that the challenging environment Zoomlion faced this year played a major role in the company’s failed efforts to acquire U.S.-based manufacturer Terex.