China's leading computer maker Lenovo Group reported a second consecutive quarterly loss on restructuring costs and a drop in its worldwide computer sales, Friday's China Daily reported.
The world's fourth largest PC vendor posted a loss of 264 million U.S. dollars for its fiscal fourth quarter that ended March with its worldwide PC sales down 8.2 percent year on year due to weakening demand, dragging its whole year earnings into the red.
The company had reported a loss of 96.7 million dollars for the previous quarter, and for the last fiscal year, it was a 226.4 million dollar net loss.
"The past two quarters have been a particularly challenging time in our industry worldwide, and we took some significant steps to get our business back on the right path," said Lenovo Chairman Liu Chuanzhi.
He reaffirmed that Lenovo "can make significant progress" against competitors a year later by focusing on emerging markets.
Yang Yuanqing, chief executive of Lenovo, said China is Lenovo's most important market to get through the current difficult period, as the company's sales in Greater China increased 4.4 percent in the fourth quarter, and its market share increased 1.1 point to 26.7 percent.
Lenovo rearranged its business organization earlier this year to divide its regional operations into two business groups, with one serving to developed markets and the other, emerging markets.
The company has also set up two product groups based on its "Think" and "Idea" branded products, which mainly serve corporate customers and individual consumers, respectively.
The reshuffle, together with a cut of 2,500 jobs in January, will save the company 300 million dollars in operational costs in the year to come, Lenovo said.
Source: Xinhua
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