Lenovo sees Q3 profits soar, sells mobile phone business
Lenovo Group said
its net income almost tripled during its third fiscal quarter, thanks to strong
demand for its computers and a weak U.S. dollar.
Lenovo's sales during the quarter came to US$4.6 billion, up 15 percent over
the same quarter a year earlier, the company said in a filing
with the Hong Kong stock exchange on Thursday. The company reported net income
of $172 million for the quarter, compared to $58 million a year earlier.
The results announcement came late. Lenovo was originally scheduled to report
its financial results on Wednesday, but missed a filing deadline with the Hong
Kong stock exchange that forced the company to delay releasing its results by
one day, it said in a statement.
Third-quarter PC shipments rose 22 percent compared to the previous year, which
Lenovo said outpaced the industry average of 16 percent. That growth likely
grew Lenovo's share of the global PC market from 7.1 percent to 7.5 percent,
the company said.
China continued to be Lenovo's strongest market, with shipments up by 25 percent
during the third quarter. Strong desktop PC sales boosted shipments in the Americas
by 15 percent, while the company saw 24 percent growth in Europe, the Middle
East and Africa. Strong demand in India helped boost shipments in Asia-Pacific,
excluding China, by 20 percent, it said.
Looking ahead, Lenovo noted that the economic outlook is uncertain, but said
continued strong demand for PCs in Asia and emerging markets elsewhere means
PC shipments will continue to see double-digit growth. The company is counting
on the expansion of consumer PC and server sales into markets outside China
to give it a boost in the months ahead.
Lenovo also announced plans to sell its mobile-phone business, which saw phone
shipments decrease by 31 percent during the fiscal third quarter. A group of
private-equity investors will buy the business in a deal valued at $100 million,
Lenovo said in a separate filing
with the Hong Kong stock exchange.
IDG News Service
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