Chinese computer business Lenovo Group Ltd. Stated Thursday that its net profit dropped 85 percent in the first year since it bought IBMs PC business. The computer business also said it lost $903 million dollars in the fourth quarter, and blamed this devastating amount on restructuring charges and seasonal issues.
Lenovo announced that PC shipments to China raised 31 percent in the fourth quarter, but its business in the U.S. was poor, declining by five percent. Despite loss to net profits, however, the company’s revenue increased to four times more than the previous year. Spokespeople for the computer business say they think the long-term outlook is good for Lenovo, and the company is focused on taking important steps towards building operating efficiency and brand awareness worldwide.
Lenovo officially purchased IBM’s PC segment on May 1, 2005. Although analysists expected computer business Lenovo’s earnings to be less than the previous year, they did not expect such a dramatic amount less.
Blogged By: Computer Consulting Kit