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May 21, 2009

Lenovo posts $264m Q4 loss

Full-year sales down 8.9% to $14.9 billion, incurs restructuring cost of $116m

By CBR Staff Writer

Lenovo has reported a loss of $264m for the fourth quarter of 2009. Consolidated sales for the fourth fiscal quarter from continuing operations decreased 25.8% year over year to $2.8 billion.

The company has initiated a restructuring programme during the quarter and incurred a cost of $116m. The company expects to save $300m in the 2009/10 fiscal year with the restructuring it has initiated in the fourth quarter of fiscal 2009.
 The company’s worldwide PC shipments declined 8.2% year over year, due to a continued decrease in commercial PC shipments worldwide, and the company’s under-representation in consumer markets.
Fourth quarter pre-tax loss from continuing operations was $268m. Net cash reserves totaled $1.18 billion.

The company’s notebook PC business consolidated revenue was down 26% to $1.7 billion and desktop computers business decreased 26% to $1 billion.

Geographically, Greater China accounted for 43.6% of the company’s worldwide sales. It reported consolidated sales of $1.2 billion. The Americas consolidated sales accounted for 24.6% of the company’s worldwide sales with $682m, the EMEA region accounted for 21.3% of the company’s worldwide sales with $591m and Asia Pacific (excluding Greater China) recorded consolidated sales of $291m.

For the fiscal year 2009, the company’s PC shipments grew 2.2% year over year. Its consolidated sales from continuing operations decreased 8.9% to $14.9 billion.

Yang Yuanqing, CEO of Lenovo, said: “Driving for growth and profitability, we will continue to protect and strengthen our leadership position in China and accelerate the return of our worldwide commercial business to profitability. At the same time, we will aggressively sharpen our focus on the growth opportunities in emerging markets, as well as with consumer and small and medium business customers worldwide.”

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