Thursday, February 1, 2018

China's Lenovo posts third-quarter loss due to U.S. tax reform

HONG KONG (Reuters) - Chinese personal computer maker Lenovo Group reported a quarterly loss of $289 million on Thursday against a $98 million profit a year earlier, due mainly to a one-off charge of $400 million resulting from U.S. tax reform.

Revenue for the three-month period ending December was $12.94 billion, compared with $12.17 billion a year ago.

Lenovo said its core PC and smart devices business group posted an 8 percent rise in revenue to $9.25 billion as sales exceeded shipments growth thanks to better average selling prices driven by innovative products and a better product mix.

Its struggling mobile business - which the group had set a target to turn around by the end of the financial year in March - reported a narrower operating loss before taxation of $92 million, compared with a loss of $132 million in the preceding quarter.

($1 = 6.2842 Chinese yuan renminbi)

Reporting by Sijia Jiang and Donny Kwok; Editing by Stephen Coates

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