Lenovo makes loss of $226 million for year

The Lenovo Group said worldwide PC shipments declined for its fourth financial quarter by 8.2 percent. It made a loss for the full year of $226 million.

The reason, said Lenovo, was a continued decrease in commercial PC shipments worldwide, while it was under represented in consumer markets.

Fourth quarter sales fell by 25.8 percent compared to the same quarter last year, while its profits fell by 49 percent year on year.

The firm is engaged in a restructuring operation and said that will save it around $300 million in its 2009/2010 financial year.

Lenovo chairman Liu Chuanzhi said that the last two quarters were “particularly challenging” for the whole PC industry. Lenovo sales in the Americas accounted for 24.6 percent of the total during the fourth quarter, a fall of 19 percent year on year. But it gained share in Brazil, it said.

Sales in mainland China, Lenovo’s home, accounted for 43.6 percent of worldwide sales. It’s the industry leader there and it managed to grow sales.

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