Lenovo reports profit tumble

 

9 November 2006 — Hong Kong (CHN): Lenovo Group has posted a 53 percent drop in its fiscal first-half net profit.

 

The world’s number 3 PC maker has struggled to gain a foothold in the global market following its acquisition of IBM’s PC division last year.

 

The company said its first-half revenue rose to $7.18 billion from $6.17 billion.

 

Net profit for the six months totalled $43.1 million, down from $91.2 million in the same period last year.

 

Analysts put the fall down to costly restructuring following the IBM acquisition and with IDC predicting slower global PC shipment growth in 2006 and 2007, the headache looks set to continue for the Chinese firm.