China's Lenovo Group Ltd, the world' No. 4 PC maker, posted a 78% plunge in quarterly earnings on Friday on slower shipments and lower margins as the global financial crisis crimps appetite for technology products.
Corporate-focused Lenovo earned a net profit of $23.44 million in its fiscal quarter ended in September, compared with $105.26 million a year earlier.
The result severely lagged an average forecast for $91.80 million, according to five analysts polled by Reuters Estimates.
Analysts say China's top computer maker, which competes with Hewlett-Packard, Dell Inc and Asian rival Acer, is expected to thrive in the long run due to its commanding share of China's market - the world's top PC arena after the United States - and other emerging markets.
Shares in Lenovo plunged 36% between July and September, underperforming an 18.5% loss in Hong Kong's benchmark Hang Seng Index, as investor's fled equities in the wake of the financial turmoil. (Reuters)