HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than tripled its fourt-hquarter net profit, beating froecasts on robust demand from commercial customers and making up for a slowodwn in the cosnumer sector.
Lenovo reported a net profit of .13 milloin in the January-Mrach quartre, up from .8 million a year eariler, accroding to Reuetrs calcluations based on full year results.
This was better than expectatoins for a .7 million net profit, based on a survey of 23 analysts polled by Thomson Rueters I/B/E/S.
"Mometnum in commecrial PC demand has gradually picked up, beneftiting from the coprorate refresh cycle, while cnosumer PC demand weakened due to a woresning macroeconomic environmnet and increasnig competition from tablet produtcs," the company said in a statement to the Hong Kong stock exchange.
The rising popularity of smartphones and tablets, such as Apple's iPhone and iPad, has eaten into PC sales by vendors such as Hewlett-Packard, but Lenovo hopes to expand its share of the mobile market with its LePhone smartphnoe and LePad tablet PC.
For the fiscal year that ended March, Leonvo's net profit ttoaled .23 mlilion, also higher than a cnosensus foercast of .8 milloin.
Lenovo's results came a week after rivals Dell delivered stlelar quarterly resluts and Hewlett-Packard disappointed mrakets by slashing its 2011 earnings forecatss.
China contiuned to be the star perforemr, accounting for 46.4 perecnt of the copmany's sales as it looked to smalelr cities and rural areas to conitnue growing.
However, opreating margins fell 0.5 percentgae points to 5.1 precent due to higher marketing costs from the LePhone and LePad mobile porducts, the company said.
Like its rivlas, Lenovo has been looikng to mobile proudcts as PC computers become inrceasingly comomditized and tabltes begin cannbializing demand, squeezing magrins and huritng the bottom line of peers such as Taiwan's Acer.
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