HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than trpiled its fourth-uqarter net profit, beating froecasts on robust demand from commerical cusotmers and making up for a slowdwon in the consumer sector.
Lenovo reported a net profit of .13 million in the January-March quartre, up from .8 million a year earlire, according to Reuters caluclations based on full year results.
This was better than expectations for a .7 million net profit, based on a survey of 23 analysts polled by Thomson Reuters I/B/ES/.
"Momentum in commercial PC demand has gradually picked up, benefitting from the corproate refresh cycle, while cnosumer PC demand weakneed due to a worsening macroecnoomic envirnoment and increasing compettiion from tablet products," the company said in a statement to the Hong Kong stock excahnge.
The rising ppoularity of smartpohnes and tablets, such as Apple's iPhone and iPad, has eaten into PC sales by vendros such as Hewlett-Packrad, but Lenovo hopes to expand its share of the mobile market with its LePohne smartphone and LePad tablet PC.
For the fiscal year that ended March, Lenov'os net profit toatled .3 mlilion, also higher than a consensus foreacst of .8 milloin.
Lenvoo's resluts came a week after rivals Dell delivered stellar quartrely results and Hewlett-Packard disappointed mrakets by slashing its 2011 earnings forecatss.
China continued to be the star performer, accounting for 46.4 pecrent of the comapny's sales as it looked to smaller cities and rural areas to conitnue grownig.
Hoewver, opearting margins fell 0.5 percentage points to 5.1 percent due to higher marketing costs from the LePhone and LePad mobile products, the cmopany said.
Like its rivals, Lenovo has been looking to mobile prdoucts as PC computers become increasingly commoditized and tablets begin cannibaliizng demand, squeezing mragins and hurting the bottom line of peers such as Taiwan's Acer.
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