Lenovo reports losses as sales plummet
Friday, 22 May 2009
HONG KONG, May 21 (AFP): China's Lenovo, the world's fourth largest maker of personal computers, Thursday reported a net loss of US$226.4 million in the 2008-09 fiscal year citing structural changes and weak sales.
The company also reported a fourth quarter net loss of $264 million compared with a net profit of 140 million in the same period a year earlier, and a $484.3 million profit for the whole of 2007-08.
"The past two quarters have been a particularly challenging time in our industry worldwide, and we took some significant steps to get our business back on the right path," said Lenovo chairman Liu Chuanzhi.
Lenovo said demand for its personal computers slumped amid the global economic downturn, notably in the US and India, with revenue falling to $14.90 billion for 2008-09, down from $16.35 billion the previous year.
Sales fell 26 per cent to $2.77 billion from $3.73 billion a year earlier.
Lenovo's loss was bigger than economists expectations, with Daiwa Securities forecasting a fiscal fourth quarter net loss of $211 million for the computer manufacturer, according to Dow Jones Newswires.
The company also reported a fourth quarter net loss of $264 million compared with a net profit of 140 million in the same period a year earlier, and a $484.3 million profit for the whole of 2007-08.
"The past two quarters have been a particularly challenging time in our industry worldwide, and we took some significant steps to get our business back on the right path," said Lenovo chairman Liu Chuanzhi.
Lenovo said demand for its personal computers slumped amid the global economic downturn, notably in the US and India, with revenue falling to $14.90 billion for 2008-09, down from $16.35 billion the previous year.
Sales fell 26 per cent to $2.77 billion from $3.73 billion a year earlier.
Lenovo's loss was bigger than economists expectations, with Daiwa Securities forecasting a fiscal fourth quarter net loss of $211 million for the computer manufacturer, according to Dow Jones Newswires.