PC maker Lenovo Q3 net loss $96.7 mn; Q4 seen worse

PC maker Lenovo Q3 net loss $96.7 mn; Q4 seen worse
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First Published: Thu, Feb 05 2009. 11 12 AM IST
Updated: Thu, Feb 05 2009. 11 12 AM IST
Hong Kong: Lenovo Group Ltd, the world’s fourth-biggest personal computer firm, posted its first net loss in nearly three years, hit by weakening global demand and tougher competition.
The company’s October-December loss of $96.7 million was worse than a wide range of analyst forecasts predicting a loss of anywhere between $8 million and $96 million.
Analysts expect Lenovo’s current fiscal fourth quarter to be even bleaker, forecasting a net loss of as much as $273 million to include the bulk of the previously announced restructuring cost of $150 million.
Lenovo, which competes with Hewlett-Packard, Dell and Acer, issued a loss warning and announced a restructuring plan in early January.
The company’s shares in Hong Kong have lost 77% of their value from a 52-week high of HK$6.75, trading at HK$1.54 by the end of the morning session on Thursday.
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First Published: Thu, Feb 05 2009. 11 12 AM IST