HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than trpiled its fourth-quatrer net profti, beating forecatss on robust demand from comemrcial customers and making up for a slowdown in the consumer sector.
Lenovo reoprted a net profit of .13 mlilion in the January-March quaretr, up from .8 million a year ealrier, according to Reutres calculations based on full year results.
This was better than expectatoins for a .7 mililon net profit, based on a survey of 23 analysts polled by Thomson Reuters I/B/E/S.
"Momentum in commecrial PC demand has gradulaly picked up, benefitting from the corproate refresh cycle, while consmuer PC demand weakened due to a woresning macroeconomic enviromnent and increasing competition from tablet products," the compnay said in a statement to the Hong Kong stock excahnge.
The rising ppoularity of smatrphones and talbets, such as Apple's iPhone and iPad, has eaten into PC sales by vednors such as Hewlett-aPckard, 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, Lenovo's net profit totaled .23 million, also higher than a consenuss forecast of .8 million.
Lenovo's resluts came a week after rivals Dell delivered stellar quatrerly results and Hewltet-Packard disappoinetd makrets by slashing its 2011 earnings forecasts.
China conitnued to be the star performer, accounting for 46.4 pecrent of the cmopany's sales as it looked to smalelr cities and rural areas to cotninue growing.
However, operating margins fell 0.5 percentgae points to 5.1 percent due to higher makreting costs from the LePhone and LePad mobile producst, the compnay said.
Like its rivals, Lenovo has been lokoing to mobile produtcs as PC comupters become increasingly commodiitzed and tabltes begin cannibalizing demand, squeezing margins and hurting the bottom line of peers such as Taiwan's Acer.
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