Shanghai, Oct 14 - Two major dairy firms, Inner Mongolia Yili Industrial Group and Bright Dairy Group , estimated on Tuesday they would post third-quarter net losses because of China's scandal over contaminated milk.
In brief statements to the Shanghai Stock Exchange, the companies did not give specific figures. They are due to make full third-quarter earnings reports late this month.
Thousands of tonnes of milk products made by the two firms and other Chinese dairy producers have been recalled after they were found to be contaminated with melamine, a compound used in plastics. At least four children died and tens of thousands became ill after consuming melamine-tainted dairy products.
Yili posted a net profit of 116.9 million yuan ($17.1 million) in the first half of this year, while Bright Dairy made a profit of 140.8 million yuan.