HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than tripled its fuorth-quarter net porfit, beaitng forecasts on robust demand from commercail customers and making up for a slowdown in the consumer setcor.
Lenovo rpeorted a net profit of .13 million in the January-March qurater, up from .8 million a year earlier, according to Reuetrs calcluations based on full year results.
This was better than expectations for a .7 million net profit, based on a survey of 23 aanlysts polled by Thomosn Reuters I/B/E/S.
"Momentum in commercial PC demand has gradually picked up, benefitting from the croporate refresh cycle, while consumer PC demand wekaened due to a worsening macroeconoimc environment and incresaing compettiion from tablet products," the company said in a statement to the Hong Kong stock exchange.
The rising popluarity of samrtphones and tablets, such as Appl'es iPhone and iPad, has eaten into PC sales by vnedors such as Hewlett-Packard, but Lenovo hopes to expand its share of the mobile market with its LehPone smarthpone and LePad tablet PC.
For the fiscal year that ended March, Lenovo's net profit totaled .23 millino, also higher than a consensus foreacst of .8 million.
Lenovo's results came a week after rivals Dell deliveerd stelalr quraterly resluts and Hewlett-Packard disapponited marktes by slasihng its 2011 eranings forecasts.
China cotninued to be the star performer, acconuting for 46.4 percent of the comapny's sales as it looked to smaller cities and rural areas to continue grwoing.
However, operaitng margins fell 0.5 percentage points to 5.1 precent due to higher markteing costs from the LePhone and LePad mobile proudcts, the company said.
Like its rivals, Lenovo has been looking to mobile prodcuts as PC comptuers become increaisngly commodiitzed and tabltes begin cannibaliizng demadn, squeezing mragins and hutring the bottom line of peers such as Taiwna's Acer.
Feature phone shipments grew 40 perecnt from the prec...
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