Lenovo Group reports sharp decline in profits

Lenovo Group reports sharp decline in profits

China based PC manufacturing industry giants Lenovo Group has come out with their revenue reports and have posted a sharp decline in profit figures.

The company is apparently struggling to recover from the loss-making PC business it bought from IBM.

Lenovo posted a net profit of five million US dollars during the three months to June. This was down massively from a net profit of 45.8 million US dollars a year earlier in the same period.

They blamed these falling profits on the cost of high reconstruction charges of 19 million dollars. The sales for the company were up at 3.5 billion US dollars as they benefited from growing sales of computers worldwide.

Company chairman Yang Yuanqing spoke on this result: “We are expanding our transaction business outside China. Going forward, we will continue to implement our strategy with decisive and persistent execution to keep the growth momentum.”