Computer maker Lenovo Group Ltd. has posted fourth-quarter loss of HKD 903 million (USD 116 million) compared with HKD 166 million profit a year earlier. The loss of was almost double analyst’s forecast of HKD 486 million. The company said the results were mainly hurt by costs arising from its USD 1.25 billion purchase of IBM’s PC arm.
Lenovo is spending about USD 100 million to overhaul its operations after buying IBM's personal computer unit last year, but it also expects to chalk up savings up of USD 100 million this year and USD 250 million annually over the next few years.
"In about three to five quarters, I'm confident that Lenovo can show high growth and healthy profit," Chairman Yang Yuanqing told reporters.
Lenovo's shipments in the Asia-Pacific, excluding its stronghold China, slipped 5 percent in the quarter, yielding revenue of HKD3.5 billion and a meagre HKD 62 million profit.
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