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Lenovo Restructures, Names New President

2/05/2009 03:16:00 PM Eastern

Hong Kong — Lenovo Group made additional moves as part of a previously announced restructuring today that will refocus the company’s efforts on domestic Chinese growth.

Lenovo also posted its third fiscal-quarter financial, which saw sales fall 20 percent to $3.59 billion and gross profits plummet 48.1 percent to $354 million. U.S. sales totaled $904 million for the quarter.

The company also replaced CEO William Amelio with Yang Yuanqing, currently Lenovo’s chairman. Company founder Liu Chuanzhi has returned to take over as chairman.

Yuanqing said company sales have been deeply hurt by the global economic slowdown, with worldwide shipments declining 5 percent. Domestic Chinese PC shipments fell 7 percent during the quarter.

“The recent restructuring actions we have taken are a direct result of our focus on improving our cost-competitiveness and operational efficiency,” Yuanqing said.

Amelio will relinquish his position effective Feb. 5, but will remain with Lenovo in an advisory capacity until September, the company said.