China's Lenovo Group, the world's number four 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 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 US, 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 investors fled equities in the wake of the financial turmoil.
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