Lenovo Group (LNVGY) announced results for its second fiscal quarter ended September 30, 2008 and said consolidated sales were flat from the year before at USD4.3 billion for the quarter from continuing operations, excluding its recently sold mobile handset business.
The company also said its worldwide PC shipments grew 7.4%, which lagged industry shipment growth due to weakened commercial and public sector PC demand and slower growth in the China market.
"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," stated 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."
Lenovo Greater China posted USD1.90 billion in consolidated sales in the second fiscal quarter, up 11%, with growth of 12% in PC shipments. Despite the impact from natural disasters occurring earlier in the year and softer consumer demand, the company continues to lead the China market with a share of 29.2% on the strength of sales across product lines. The company's Greater China business accounted for 44% of total sales in the quarter.
The Americas accounted for USD1.1 billion in consolidated sales, or 25% of total sales during the quarter. Shipments for the Americas were down 4% in the quarter.