Shanghai-listed Eastern Communications (Eastcom) yesterday warned investors that its full-year earnings might plunge more than 50 per cent after heavy losses in the past quarter. The domestic telecoms equipment and mobile handset maker recorded a net loss of 64.35 million yuan (about HK$60.4 million) for the three months to September, compared with a 23.87 million yuan net profit in the previous corresponding period. Turnover for the third quarter dipped 6.7 per cent year on year to 2.17 billion yuan. 'The telecom equipment manufacturing industry that we are engaged in is facing continuous decline in profitability. This will definitely hurt our earnings and financial situation for 2002,' said Eastcom chairman Shi Jixing. Eastcom added that its full-year net profit was expected to dive more than 50 per cent from 2001. For the nine-month period, it said net profit fell 96.64 per cent to 5.21 million yuan, from 155.08 million yuan in the first three quarters of 2001. Turnover for the first three quarters of this year fell 4.77 per cent to 634.82 million yuan. Eastcom blamed the global telecom sector slump.