Stumbling Lenovo turns in record loss
Fourth quarter was pants
Stumbling PC giant Lenovo saw sales and profits fall further than expected in the fourth quarter.
The firm, which owns the ThinkPad brand, said sales fell 26 per cent to $2.8bn in the fourth fiscal quarter of 2009. Gross profit was down 49 per cent to $285m.
Factoring in restructuring charges and other costs Lenovo made a pre-tax loss of $285m in the three months ended 31 March. The board of directors has cancelled the full year dividend payment.
Lenovo's chairman, Liu Chuanzhi, said: “...while our performance in the fourth fiscal quarter did not meet our expectations, we are confident that we have the right pieces in place to hit our financial targets and be ready to take advantage as economic conditions improve.”
Laptops account for 60 per cent of Lenovo's sales.
Greater China accounts for 43.6 per cent of Lenovo's total sales - $1.2bn in the fourth quarter - and it strengthened its position in the top slot there. We've asked for a definition of "Greater China"...
The Americas brought in sales of $682m, down 19 per cent year on year. Europe, the Middle East and Africa saw sales of $591m, down 13 per cent. Asia-Pacific, excluding Greater China, made sales of £291m, down 32 per cent year on year.
The company expects to save $300m next year as a result of restructuring - it has divided its business into different regional units.
For the full year Lenovo made sales of $14.9bn, a 2.2 per cent fall on last year. Gross profit margin also fell from 15 per cent last year to 11.9 per cent this year. The firm made a full year loss of $226m.
Full statement available from here. ®
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