Work in progress
Chinese PC giant Lenovo has reported quarterly profits that were well short of analysts' expectations after softening demand and on-going restructuring costs took their toll.
Its profit of $23 million compares with expectations closer to $90 million. The shortfall seems to be mainly due to a combination of smaller margins (earnings were about the same as a year ago) and one-off charges associated with restructuring.
"Due to the impact of the global economic downturn, and a shortfall in the execution of our strategic plan, Lenovo's performance in the second quarter did not meet our expectations," said Lenovo Chairman Yang Yuanqing.
"Going forward, we will address the situation by optimizing our operating structure to improve efficiency and reduce expenses, to increase our focus on execution, and to accelerate growth in emerging markets and the consumer sector."
The adverse economic conditions for Lenovo manifested themselves in weakened commercial and public sector PC demand and slower growth in the China market.
