RESEARCH TRIANGLE PARK, N.C. – William Amelio, chief executive officer of PC maker Lenovo, said Thursday the company needs more time to build “new muscles.”

Amelio said Lenovo faces many challenges, from continuing to absorb the RTP-based personal computer division of IBM, which it purchased last year, to price pressure from competitors.

Lenovo, which is building a new headquarters in Morrisville, N.C., reported a 16 percent drop in quarterly profits on Thursday. Profits dropped to $38 million for the quarter ending Sept. 30. That total was down from $45.4 million one year ago.

Still, Amelio remained upbeat.

“We are confident that the business is moving in the right direction and that we will soon begin to see the benefits of our strategic initiatives and hard work,” he said in a statement. “Our expense reductions are on track, and we are making solid progress against the four key initiatives – transaction model rollout, supply chain improvements, desktop competitiveness and brand-building – introduced last quarter.

“We are moving carefully and sensibly to enhance operational excellence and, therefore, our market competitiveness,” he added, “but as we’ve said in the past, the full benefits of those actions will take several quarters to realize.”