Lenovo sees Q3 profits soar, sells mobile phone business
- 31 January, 2008 08:46
Lenovo Group said its net income almost tripled during its third fiscal quarter, thanks to strong demand for its computers and a weak US dollar.
Lenovo's sales during the quarter came to $US4.6 billion, up 15 per cent 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 per cent compared to the previous year, which Lenovo said outpaced the industry average of 16 per cent. That growth likely grew Lenovo's share of the global PC market from 7.1 per cent to 7.5 per cent, the company said.
China continued to be Lenovo's strongest market, with shipments up by 25 per cent during the third quarter. Strong desktop PC sales boosted shipments in the Americas by 15 per cent, while the company saw 24 per cent growth in Europe, the Middle East and Africa. Strong demand in India helped boost shipments in Asia-Pacific, excluding China, by 20 per cent, 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 per cent 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.