Lenovo posts record loss in fiscal fourth quarter

Lenovo, China’s largest personal computer manufacturer, posted a record loss of US$264 million for its fiscal fourth quarter due to stuttering global demand and restructuring charges, the Wall Street Journal reported. The net loss for the three months ending March 31 compared to a profit of US$140 million a year earlier. The company also posted a full-year loss of US$226.4 million, down from a profit of US$484.3 million the previous year. Annual sales fell 8.9% to US$14.9 billion. Lenovo is not optimistic about a quick rebound. Yang Yuanqing, the company’s CEO, said he expects the Chinese market to remain the core growth driver, adding that Chinese demand had risen significantly since the end of the fiscal fourth quarter. Lenovo booked restructuring charges of US$146 million for the fiscal year ending March 31. It has cut 2,500 jobs since January and expects to realize savings of US$300 million in the coming year.