Slowing PC shipments hurt Lenovo profit

Chinese computer maker Lenovo saw its quarterly profit fall 78% year-on-year to US$23.4 million on the back of falling shipments, the Wall Street Journal reported. PC unit shipments for the company’s fiscal second quarter, which ended September 30, rose 7.4%, below the industry growth rate for the quarter. Although sales were up 12% in Greater China and 18% in Europe, the company saw a 4% decline in the American market. Lenovo Chairman Yang Yuanqing said he expects the company’s performance to continue to be affected by the global downturn. Lenovo plans to spend US$75-100 million on restructuring over the next several quarters to counter the impact of slowing growth. The first round of restructuring will see the loss of 50 jobs in the US. The company will also step up expansion in fast-growing areas such as low-cost laptop computers.