Thursday, May 25, 2006

Lenovo Posts Loss on Costs From IBM PC Unit Purchase

From Bloomberg:

"Lenovo Group Ltd., China's largest personal-computer maker, reported a worse-than-expected fourth- quarter loss because of costs for cutting jobs after buying International Business Machines (IBM) Corp.'s PC business.
Net loss for the three months ended March 31 was HK$903 million ($116 million), compared with a profit of HK$166 million a year earlier, the Purchase, New York-based company said in an e-mailed statement. Lenovo said it had a one-time cost of HK$543 million for cutting jobs and relocating offices."

" "The IBM purchase might not have been worth the money,'' said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. "The problem is much deeper than we thought.'' "


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