INTERNATIONAL - Chinese PC maker Lenovo Group (0992.HK) swung to its biggest annual loss in nine years as higher component costs, an expected tax writedown and lower income from asset disposals overshadowed growth in revenue.
The company, which lost the world’s largest PC maker crown to HP Inc (HPQ.N) in 2017, has seen its core PC business suffer from a shrinking market globally, while its smartphone business struggles to stay ahead of fierce competition.
For the year ended March 2018, Lenovo’s revenue rose 5 percent to a three-year high, but the company still posted loss attributable to shareholders of $189 million, versus a $535 million profit a year ago.
This was the company’s biggest loss since 2009 and wider than an average analyst estimate for a loss of $161.3 million from 17 analysts polled by Thomson Reuters.
Year-on-year comparisons were skewed by an income of $10.89 million from asset disposals last year, versus only $0.3 million in the year just ended.