CORPORATE FORTUNES

Lenovo Rues Virus Disruption To Mobile

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Lenovo lamented the impact of the Covid-19 (coronavirus) pandemic on its mobile business in its fiscal Q4 (to end-March), as it was forced to shutdown its primary global factory in the Chinese city of Wuhan which contributed to a sharp revenue dip.

In an earnings statement the company said its mobile division was “on target for a breakthrough year” before the pandemic struck and caused the factory closure.

Mobile Business Group revenue declined 46.7 per cent year-on-year to US$824 million in fiscal Q4, and slipped to a pretax loss of US$60 million from a US$4 million profit “after aggressive expense actions mitigated part of the negative impact from less supply”.

Despite the Wuhan factory shutdown, Lenovo said it leveraged its global manufacturing footprint and produced 6 million phones during the quarter.

At group level, revenue dipped to US$10.6 billion from US$11.7 billion, due to industry-wide supply disruption related to Covid-19, while net income dropped from US$118 million to US$43 million.

Revenue from the Intelligent Devices Group, which includes mobile, PC and smart devices, declined 4.4 per cent to US$8.5 billion, with Data Centre Business Group sales down 3 per cent to US$1.2 billion.

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