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Lenovo reports third quarterly profit

Lenovo reports third quarterly profit
AP
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First Published: Thu, May 27 2010. 03 19 PM IST
Updated: Thu, May 27 2010. 03 19 PM IST
Beijing: Lenovo Group, the fourth-largest personal computer maker, reported its third straight quarterly profit on 27 May on strong sales growth in China and a revival in demand from business customers.
Lenovo said profit for the three months ending 31 March was $13 million, or 0.14 US cents per share, compared with a $264 million loss a year earlier. Sales rose 56 percent from the same quarter of 2009 to $4.3 billion.
Lenovo was hit hard by the global economic crisis, which prompted its core corporate customers to slash purchases. The company suffered three losing quarters before rebounding to profit in the three months ending 30 September.
“While we have achieved much in the past 12 months, there are both significant challenges and tremendous opportunities ahead of us,” said chairman Liu Chuanzhi in a statement.
In its home Chinese market, sales rose 67% over a year earlier to $2 billion. Sales of consumer products, an area targeted for expansion, soared by 90% over a year earlier.
Growth in North America, Europe and other mature markets was helped by a recovery in commercial sales that boosted PC shipments by 37% over a year earlier.
In India, Latin America and other emerging markets, PC shipments rose 95% from a year earlier.
Lenovo, which acquired IBM Corp.’s PC unit in 2005, is expanding aggressively in mobile Internet after launching its first smart phone and two Web-linked portable computers in January. CEO Yang Yuanqing said in February that Internet products should account for up to 80% of Lenovo’s sales within five years.
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First Published: Thu, May 27 2010. 03 19 PM IST
More Topics: China | Earnings | Lenovo | Profit | Company results |