Feeds

Stumbling Lenovo turns in record loss

Fourth quarter was pants

Reducing security risks from open source software

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. ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.