Lenovo posted a net profit of five million US dollars during the three months to June, including restructuring charges, compared with a net profit of 357 million dollars (45.8 million US) a year earlier.

The Hong Kong-listed company, which last year bought the IBM business, blamed the high reconstruction charges of 19 million dollars on the sharp decline in profit.

Sales grew 38 percent to 3.5 billion US dollars as worldwide PC shipments grew more than 12 percent from a year earlier.

Company chairman Yang Yuanqing said the group continues to sustain strong momentum in its China market while enhancing its business relationships outside the mainland.

"We are expanding our transaction business outside China. Going forward, we will continue to implement our strategy with decisive and persistent execution to keep the growth momentum," he said in a statement.

Lenovo president and chief executive officer William Amelio said the group is encouraged by the progress being achieved in transforming the company while growing its market share and maintaining its overall profit margin in a highly-competitive market.

"That said, we still have much to do; and we are moving swiftly and aggressively," he said.

He said Lenovo continued to lead the PC market in the Greater China region during the first quarter to June, with shipments increasing about 30 percent year-on-year.

Sales in the region totaled 1.3 billion dollars, accounting for 39 percent of the company's total revenues.

Lenovo's PC shipments to the North American market rose 6.0 percent year-on-year, while revenues amounted to 1.0 billion dollars, accounting for 29 percent of total sales.

Shipments to the Asia-Pacific region, excluding Greater China, rose 3.0 percent, with revenues of 461 million dollars.

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