Chinese computing giant Lenovo Group says its sales slipped 25.8% from the same period last year as it today reported results for its fourth fiscal quarter and full year ended March 31, 2009.
During the fourth quarter, Lenovo's worldwide PC shipments declined 8.2% year-over-year, and the company states that overall industry PC shipments declined 7% worldwide for the same period. Consolidated sales for the fourth fiscal quarter from continuing operations decreased 25.8% year-over-year to USD2.8 billion. Excluding restructuring costs and one-off items, the company's gross profit for the quarter declined 49% year-over-year, with gross margin at 10.3%. Lenovo reported a fourth quarter pre-tax loss of USD268 million — including a USD116 million restructuring and USD71 million one-off items charges — from continuing operations. The loss attributable to shareholders for the quarter was USD264 million.
"The past two quarters have been a particularly challenging time in our industry worldwide, and we took some significant steps to get our business back on the right path," stated Lenovo Chairman Liu Chuanzhi.
For the 2008/09 fiscal year, consolidated sales from continuing operations decreased 8.9% year-over-year to USD14.9 billion. Lenovo's PC shipments grew 2.2% year-over-year. The company's gross profit margin for the fiscal year was 11.9%, excluding restructuring costs and one-off items, compared to 15.0% last year. Including restructuring costs and one-off items, the company's pre-tax loss for continuing operations was USD188 million. The full-year loss attributable to shareholders was USD226 million.