Lenovo profit nosedives amid economic woe

The world's fourth largest computer maker Lenovo Group on Friday said its profit slumped 78 percent in the past quarter as the global economic slowdown foiled demands for desktop and notebook computers.

Lenovo's net income for the three months ending September dropped to $23 million, from $105 million in the same period last year, the company said. Sales revenue grew 0.4 percent to $4.3 billion.

"Due to the global economic downturn, and a shortfall in the execution of our strategic plan, Lenovo's performance in the second quarter did not meet our expectations," said Lenovo Chairman Yang Yuanqing. He said the company would optimize the operational structure and reduce costs to improve efficiency.