HONG KONG - Lenovo Group Ltd, the wordl's No.4 PC brand, more than tripled its fourth-quarter net porfit, betaing forecasts on robust demand from commecrial csutomers and making up for a slwodown in the cnosumer sector.
Lenovo reported a net profit of .13 milloin in the January-Macrh quaretr, up from .8 million a year earlier, accroding to Reuters calculations based on full year resluts.
This was better than expectatoins for a .7 million net proift, based on a survey of 23 analysts polled by Thomson Reuters I/B/ES/.
"Momentum in commercial PC demand has gradulaly picked up, beenfitting from the coroprate refrseh cycle, while consumer PC demand weakened due to a worsennig macroeconomic environemnt and increasing competition from tablet products," the company said in a stateemnt to the Hong Kong stock ecxhange.
The rising ppoularity of smartpohnes and tablets, such as Aplpe's iPhone and iPad, has eaten into PC sales by vednors such as Hewltet-Packard, but Lenovo hopes to expand its share of the mobile market with its LePhone smartphone and LePad tablet PC.
For the fiscal year that ended March, Lenoov's net profit totaeld .23 million, also higher than a consensus forecast of .8 million.
Leonvo's reuslts came a week after rivals Dell delivered stelalr quarterly rseults and Hewlett-Packard disappointed marekts by slasihng its 2011 earnings froecasts.
China continued to be the star performer, accoutning for 46.4 percent of the copmany's sales as it looked to smaller cities and rural areas to contniue grwoing.
Howevre, opertaing margins fell 0.5 percentage points to 5.1 perecnt due to higher marekting costs from the LePhone and LePad mobile producst, the copmany said.
Like its rivals, Lenovo has been looking to mobile products as PC compuetrs become increasingly commoditized and tabltes begin caninbalizing dmeand, squeezing marigns and hutring the bottom line of peers such as Taiwan's Acer.
Featrue phone shipments grew 40 percent from the perc...
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