Lenovo Group reports falling profits

Lenovo Group reports falling profits

China based Lenovo Group has come out with their revenue reports and the company has said that its net profit fell 85 percent.

This is their first year after they acquired IBM’s personal computer division and became a global player shocking the markets.

Lenovo also reported a fiscal fourth quarter net loss of HK$903 million. Last year they had made profits of HK$166 million. The company blames these losses on restructuring charges and seasonal factors.

They added that for the first three months of the year, the revenues were up HK$24.4 billion from HK$4.7 billion in the same period last year. The shipments to China were up 31 percent in the fourth quarter. However, they failed to record much growth in the US market.

Shipments were also down in the other major markets like Europe, the Middle East and Africa.

William J. Amelio, Lenovo’s president and chief executive officer, said in a statement: “We are sharply focused on taking the steps now that we believe will make us successful and more profitable over the long term: improving our operating efficiency, building brand awareness and expanding our dual business model.”