By Carlos Tejada and Paul Mozur
July 16, 2012 10:42 a.m. ET
BEIJING—China’s slowing economy is beginning to hit the corporate bottom line at a number of foreign and domestic companies, as warnings of lower profitability set the stage for discouraging results in coming weeks.
Since late Friday, major Chinese companies including electronic equipment maker ZTE Corp. 000063.SZ -2.07% , China Eastern Airlines Corp. 600115.SH -1.41% , retailer Suning Appliance Co. 002024.SZ -4.63% and electronics maker TCL Communication Technology Holdings Ltd. 2618.HK -0.81% warned that results would be lower than expected. The reports helped send Shanghai’s benchmark stock index down 1.7% on Monday despite a generally positive day in Asian markets.
The reports followed similar ones in recent days from sportswear maker Li Ning Co. 2331.HK -3.53% and Dongfeng Automobile Co. 600006.SH -1.01% A number of foreign companies, including engine maker Cummins Inc. CMI +0.51% and shoemaker Nike Inc. NKE -0.69% of the U.S. as well as Burberry Group BRBY.LN -0.13% PLC of the U.K., have also indicated softening growth in demand in China.