Lenovo Reports 78% Profit Loss Nov 11, 2008

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Lenovo Group's quarterly profit fell 78%, and the company said it will launch a restructuring with possible job cuts.

Profit for the three months ended Sept. 30 was US$23 million, compared with $105 million, in the same period last year. Lenovo reported a 0.4% rise in total global sales to $4.33 billion.

President and CEO William J. Amelio said the restructuring might include job cuts but no details were decided. He said it would cost $75 million to $100 million, including a $24 million charge recorded in the past quarter.

Sales in Greater China — which includes Hong Kong and Taiwan — rose 11% to $1.9 billion, the company said. But elsewhere, shipments in the Americas were off 4% and in the Asia-Pacific outside China down 10%.

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