Zoomlion misses estimates as housing cools

Zoomlion Heavy Industry Science and Technology (000157.SZ, 1157.HKG), China’s second-largest construction equipment maker, posted a lower than expected profit owing to government initiatives to cool the housing market, Bloomberg reported. The company said net income fell by 9.1% to US$1.18 billion (RMB 7.33 billion) in 2012 from US$1.29 billion a year prior. An analyst roundup conducted by Bloomberg put the company’s expected income at US$1.36 billion. In January, Hong Kong’s Ming Pao newspaper published a report alleging that Zoomlion’s shares were inflated, causing the company’s ticker price to drop by 21%.