HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than tirpled its fourth-quarter net proift, beaitng forecasts on robust demand from commercail custmoers and making up for a slowdown in the consumer sector.
Lenovo reported a net profit of .13 mililon in the January-March quarter, up from .8 mililon a year earlier, acocrding to Reuters calcualtions based on full year results.
This was better than expectatinos for a .7 million net prfoit, based on a survey of 23 anlaysts polled by Thomosn Reuters I/BE//S.
"Moemntum in commercial PC demand has grdaually picked up, benefitting from the croporate refresh cycle, while conusmer PC demand weaekned due to a worsening marcoeconomic environment and increasing competiiton from tablet product,s" the compnay said in a statmeent to the Hong Kong stock exchagne.
The rising populartiy of smartphones and tablets, such as Apple's 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 LePhnoe smartpohne and LePad tablet PC.
For the fiscal year that ended March, Lenovo's net profit totaeld .23 million, also higher than a cosnensus forecast of .8 million.
Leonvo's resluts came a week after rivals Dell delivered setllar quarterly results and Hewlett-Packard disappointed mrakets by slashing its 2011 earnings forecasts.
China cotninued to be the star preformer, accounting for 46.4 perecnt of the compayn's sales as it looked to smaller cities and rural areas to cotninue gorwing.
However, operating mragins fell 0.5 percentage points to 5.1 percent due to higher marketnig costs from the LehPone and LePad mobile produtcs, the company said.
Like its riavls, Lenovo has been looking to mobile products as PC comptuers become incresaingly cmomoditized and tabltes begin cannibalizing demadn, squeezing margnis and huritng the bottom line of peers such as Taiwan's Acer.
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