Lenovo Q4 loss widens on low demand

Lenovo Q4 loss widens on low demand
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First Published: Thu, May 21 2009. 02 58 PM IST
Updated: Thu, May 21 2009. 02 58 PM IST
Hong Kong: PC maker Lenovo Group Ltd on Thursday posted its second consecutive quarterly net loss as restructuring costs weighed on earnings and demand for technology goods fell due to the deepening global recession.
Lenovo, the world’s No.4 personal computer maker, reported a loss of $264 million for its fiscal fourth quarter through March, following a $96.7 million loss for the October-December 2008 quarter.
The latest result reversed a year-earlier profit of $140.4 million.
The loss exceeded the average forecast quarterly net loss of $186 million by five analysts polled by Reuters.
For the full year to March, it posted a net loss of $226.4 million, compared with a consensus forecast of a $149 million loss by the five analysts.
Lenovo lost some global market share during the year to rivals Dell Inc, Hewlett Packard Co and Acer, but continued to expand its dominance in China with growth in market share to 30% from 28%.
Shares in Lenovo fell 3.9% to close at HK$2.99 on Thursday ahead of the results announcement. The stock lost 70% of its value in calendar 2008 to HK$2.11, underperforming the 48% fall in Hong Kong’s benchmark index.
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First Published: Thu, May 21 2009. 02 58 PM IST
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