Lenovo's worldwide PC shipments declined 8.2 percent YOY during the fourth fiscal quarter, against a 7% slump in overall industry PC shipments worldwide for the same period. A continued decrease in commercial PC shipments worldwide and the vendor's under-representation in consumer markets have been cited as two major reasons behind this decline by the vendor.
Notebook computers continued to be the largest contributor to the company's sales worldwide, generating close to 60 percent of Lenovo's total sales revenue. Consolidated sales for Lenovo's notebook PC business worldwide in the fourth fiscal quarter totaled $1.7 billion, down 26 percent YOY. The company's notebook shipments worldwide in the quarter were up two percent YOY.
Consolidated sales of Lenovo desktop computers worldwide decreased 26 percent YOY in the fourth fiscal quarter to $1.0 billion, or 38 percent of Lenovo's total sales revenue. Desktop shipments for the same period declined 17.6 percent.
Interestingly, Lenovo's PC shipments in China increased 4.4 percent year over year in the quarter, compared to an overall industry decrease of PC shipments in China of 0.1 percent while the PC shipments in Asia Pacific (excluding Greater China) have decreased 32 percent YOY in the quarter. An encouraging response to the company's new netbook product line-up across the region was also offset by a significant drop in the market in India.
"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. While our performance in the fourth fiscal quarter did not meet our expectations, we are confident that we have the right pieces in place to hit our financial targets and be ready to take advantage as economic conditions improve," said Lenovo Chairman Liu Chuanzhi.
"Driving for growth and profitability, we will continue to protect and strengthen our leadership position in China, and accelerate the return of our worldwide commercial business to profitability. At the same time, we will aggressively sharpen our focus on the growth opportunities in emerging markets, as well as with consumer and small and medium business customers worldwide," said Yang Yuanqing, Lenovo CEO.
For the 2008/09 fiscal year, consolidated sales from continuing operations decreased 8.9 percent YOY to US$14.9 billion. Lenovo's PC shipments grew 2.2 percent YOY. The Company's gross profit margin for the fiscal year was 11.9% (excluding restructuring costs and one-off items), compared to 15.0 percent last year. Including restructuring costs and one-off items, the Company's pre-tax loss for continuing operations was $188 million. The full-year loss attributable to shareholders was US$226 million. Basic loss per share for the 2008/09 fiscal year totaled (2.56) US cents, or (19.91) HK cents.
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5/23/2009
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