Lenovo Group reported a 15.56% drop in profits in the second fiscal quarter. Net profits fell to US$38 million for July-September from US$45 a year ago, the <i>South China Morning Post</i> reported quoting a Bloomberg survey of six analysts. Sales edged up 1.29% to US$3.7 billion. Lenovo made about US$83 million in the greater China region but its international business, acquired from IBM, reported US$24 million in losses. The results are worse than expected. Lenovo has so far poured US$91 million into a US$100 million restructuring of the IBM division it bought two years ago. The losses and ongoing restructuring costs have led many to question the wisdom of Lenovo's US$1.25 billion acquisition, one of the first major overseas purchases by a Chinese firm.
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