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Lenovo sees revenue, profit growth in Q3

Lenovo sees revenue, profit growth in Q3

Lenovo reported a four-fold increase in revenue for its third quarter, driven by its acquisition of IBM Corp.'s PC business last May and growth in China.

Lenovo reported a four-fold increase in revenue for its third quarter, driven by its acquisition of IBM's PC business last May and strong performance in China.

Revenue for the period was $HK31.1 billion ($US4 billion as of December 31, the last day of the quarter), up 392 per cent from the same quarter a year earlier. Net profit was $HK365 million, up 12 per cent year-over-year.

The PC business acquired from IBM had been profitable for the last three quarters, Lenovo said, although it admitted that regional performance had varied.

PC shipments in the Americas remained steady, providing revenue of $HK8.9 billion, or 29 per cent of total revenue. The segment reported $HK196 million in operating profit, Lenovo said.

Greater China revenue was $HK11.5 billion, or 37 per cent of the total, and shipments to mainland China increased 39 per cent, the company said.

The region that includes Europe, the Middle East and Africa posted a modest profit, reversing last quarter's loss. It accounted for 22 per cent of total revenue.

The Asia-Pacific business, excluding Greater China, remained in the red, with an operating loss of $HK140 million.

The company's mobile phone business, which is focused on China, showed strong growth last year, with handset shipments more than doubling to over 1.9 million units. The division posted revenue of $HK1.4 billion, up 238 per cent, Lenovo said.


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