PC maker Lenovo reports loss, ousts CEO

HONG KONG -- PC maker Lenovo Q3 net loss $96.7 mln; Q4 seen worse

Lenovo Group said Thursday that CEO William Amelio was stepping down after the world's fourth-biggest personal computer firm posted its first net loss in nearly three years, hit by weakening global demand and tougher competition.

The company said current Chairman Yang Yuanqing will take over as CEO and Lenovo founder Liu Chuanzhi will return as chairman as part of a managment reshuffle. Rory Read, Lenovo?s senior vice president, operations, has been named to the newly created position of president and COO

Lenovo's October-December loss of $96.7 million was worse than a wide range of analyst forecasts predicting a loss of anywhere between $8 million and $96 million.

Analysts expect Lenovo's current fiscal fourth quarter to be even bleaker, forecasting a net loss of as much as $273 million to include the bulk of the previously announced restructuring cost of $150 million.

"Lenovo has grown successfully on the international stage, but at this important time, we want to pay particular attention to our China business as it represents the foundation of our global business and growth strategy," said Liu, founder and returning chairman.