Menu
Q3 profits soar for Lenovo

Q3 profits soar for Lenovo

Lenovo Group said its net income almost tripled during its third fiscal quarter, thanks to strong demand for its computers and a weak US dollar.

Lenovo's sales during the quarter came to US$4.6 billion, up 15 percent over the same quarter a year earlier, the company said in a filing with the Hong Kong stock exchange on Thursday. The company reported net income of $172 million for the quarter, compared to $58 million a year earlier.

The results announcement came late. Lenovo was originally scheduled to report its financial results on Wednesday, but missed a filing deadline with the Hong Kong stock exchange that forced the company to delay releasing its results by one day, it said in a statement.

Third-quarter PC shipments rose 22 percent compared to the previous year, which Lenovo said outpaced the industry average of 16 percent. That growth likely grew Lenovo's share of the global PC market from 7.1 percent to 7.5 percent, the company said.

China continued to be Lenovo's strongest market, with shipments up by 25 percent during the third quarter. Strong desktop PC sales boosted shipments in the Americas by 15 percent, while the company saw 24 percent growth in Europe, the Middle East and Africa. Strong demand in India helped boost shipments in Asia-Pacific, excluding China, by 20 percent, it said.

Looking ahead, Lenovo noted that the economic outlook is uncertain, but said continued strong demand for PCs in Asia and emerging markets elsewhere means PC shipments will continue to see double-digit growth. The company is counting on the expansion of consumer PC and server sales into markets outside China to give it a boost in the months ahead.

Lenovo also announced plans to sell its mobile-phone business, which saw phone shipments decrease by 31 percent during the fiscal third quarter. A group of private-equity investors will buy the business in a deal valued at $100 million, Lenovo said in a separate filing with the Hong Kong stock exchange.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Lenovo

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments