Lenovo posts surprise loss after US tax reforms hit it with a $400m charge
Beijing — Lenovo Group posted a surprise loss after taking a $400m charge due to US tax reforms as its mobile business continues to struggle with shrinking revenue. The world’s second-largest PC maker reported a $289m net loss in the three months ended December. This compares with the projection of a $124.5m profit, according to the average of analysts’ estimates compiled by Bloomberg. Lenovo’s struggles in smartphones, where it’s getting squeezed by rivals and higher component prices, are overshadowing improvements in its data centre and PC divisions. CEO Yang Yuanqing doesn’t expect the business to break even in the second half with more time needed to turn around a unit that has yet to make money from its 2014 purchase of Motorola Mobility for $2.9bn. "They just need to figure out their messaging. I don’t know what Lenovo stands for from a phone perspective," said Anand Srinivasan, an analyst at Bloomberg Intelligence. "I would characterise mobile as mixed." Total operating incom...
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