ERA Mining Machinery Limited (HKG:8043) expected to record a substantial decrease in profit or even a loss for the year ended 31 December 2011 as compared with a profit for the year ended 31 December 2010.

The Company said that such expected decline can be attributed to a decrease in gross profit margin related to increased costs of materials, higher finance costs due to increased borrowings and interest rates during 2011, and a higher allowance for trade receivables.