updated 03:10 pm EST, Thu February 5, 2009
Lenovo 3rd quarter loss
Lenovo on Thursday announced its detailed third quarter financial results, posting a pre-tax loss of $90 million. The fiscal quarter ended December 31st, and the company's worldwide PC shipments declined five percent compared to the same time last year. At the same time, the company's board of directors announced a number of changes to senior management that primarily restore leaders from the company's home country of China.
Chief among them is founder and board member Liu Chuanzhi, who is returning as chairman. Current chairman Yang Yuanqing is back to CEO, replacing William Amelio whose three-year contract has ended but will remain an advisor until September. A newly created position, president and COO, has been granted to Rory Read, Lenovo's senior vice president.
Lenovo's third quarter global PC sales fell five percent compared to the quarter from the previous year, while its China market declined by 7 percent. The $90 million pre-tax loss does not include a $6 million restructuring charge the company undertook.
In greater China, Lenovo's strongest market, sales accounted for 45 percent of all shipments during the quarter. As such, the company is bringing back Yang Yuanqing, who is credited with building the company's strong market share in China.
Early in January, Lenovo introduced a worldwide restructuring program meant to save about $300 million in the 2009/2010 fiscal year.