Lenovo reports Q2 $714m net loss

AFP, HONG KONG: Chinese technology giant Lenovo yesterday said it saw a profit loss for the second quarter following a cost restructuring plan, despite stronger sales in its mobile business.
However, the loss reported by the world’s biggest personal computer maker was narrower than analysts’ forecasts. Lenovo had said that it would seek to slash costs by $1.35 billion annually and cut 3,200 staff from its non-manufacturing workforce—around five per cent of its worldwide headcount, when it announced its first quarter results in August.
“Going forward these actions are intended to drive meaningful run-rate cost savings of about $650 million in the second half of this year and about $1.35 billion on an annual basis,” the firm said in the Thursday statement.
Lenovo posted a net loss of $714 million for the second quarter ending September 30, compared to a profit of $262 million in the same period last year. Analysts had expected the firm to report a $803 million loss, according to Bloomberg News.
Revenue increased 16 per cent to $12.15 billion, while the company also saw a pre-tax loss of $842 million.
Lenovo has suffered from a decline in global demand for PCs, which account for around a third of its revenue despite its efforts to diversify into other sectors, including the smartphone market.

Lenovo reports Q2 $714m net loss

AFP, HONG KONG: Chinese technology giant Lenovo yesterday said it saw a profit loss for the second quarter following a cost restructuring plan, despite stronger sales in its mobile business. However, the loss reported by the worlds biggest personal computer maker was narrower than analysts forecasts. Lenovo had said that it would seek to slash costs by $1.35 billion annually and cut 3,200 staff from its non-manufacturing workforcearound five per cent of its worldwide headcount, when it announced its first quarter results in August. Going forward these actions are intended to drive meaningful run-rate cost savings of about $650 million in the second half of this year and about $1.35 billion on an annual basis, the firm said in the Thursday statement. Lenovo posted a net loss of $714 million for the second quarter ending September 30, compared to a profit of $262 million in the same period last year. Analysts had expected the firm to report a $803 million loss, according to Bloomberg News. Revenue increased 16 per cent to $12.15 billion, while the company also saw a pre-tax loss of $842 million. Lenovo has suffered from a decline in global demand for PCs, which account for around a third of its revenue despite its efforts to diversify into other sectors, including the smartphone market.