Menu
Quickread: Profits fall, sales rise at Lenovo

Quickread: Profits fall, sales rise at Lenovo

Lenovo Group has reported a slimmer profit for the first half of its fiscal year, despite a rise in sales during the period.

Lenovo's revenue for the six month period ended on 30 September was US$7.2 billion, up from $6.2 billion during the same period last year. But the company's profit attributable to shareholders fell by 53 percent during the first half of its fiscal year, from $91.2 million to $43.1 million, it says in a filing to the Hong Kong stock exchange.

The company saw a 10 percent year-on-year increase in the volume of shipments for the second fiscal quarter, but pricing pressure meant that revenue for the quarter increased just one percent year on year, to $3.7 billion. Pre-tax income was $43 million. The company blamed slow growth in mature markets and intensified competition for the small revenue increase.

The company maintained its PC sales lead in China, increasing shipments there by 25 percent during the quarter. China accounted for 39 percent of Lenovo's total revenue for the quarter, at $1.4 billion.

However, Lenovo lost ground in North and South America, with shipments there decreasing by 9 percent. Sales in Asia-Pacific were flat, the company says.

Notebook computer sales accounted for 52 percent of total revenue for the quarter, at $1.9 billion. Lenovo notebook shipments were up 20 percent year-on-year, it says. The mobile handset business saw 39 percent year-on-year growth in shipments, but accounted for only 4.5 percent of total revenue, at $166 million.

In August, Lenovo reported a profit of $5 million on revenue of $3.5 billion during the first quarter of its fiscal year. At that time, company officials said profits had been dragged down by costs related to layoffs and a restructuring programme announced in March.


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

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments