Lenovo posts slim profit, faces challenges

Lenovo swung to a slim profit in its fiscal second quarter, helped by the sale of an office building, but faced further struggles in its smartphone venture, according to The Wall Street Journal. Sales declined from the year-earlier period in each of Lenovo’s three main business groups: personal computers, mobile devices and data centers. Lenovo’s net income totaled $157 million for the quarter ended Sept. 30, rebounding from a net loss of $714 million in the year-earlier period. The company benefited from a $206 million sale of an office building in Beijing that it will lease back. Lenovo also sold and leased back an office building in its fiscal first quarter, for a one-time gain of $129 million. Second-quarter revenue fell 7.6% to $11.2 billion from $12.2 billion a year earlier.