HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than tripled its foutrh-quarter net proift, beatnig forecasts on robust demand from commercial csutomers and making up for a slowdown in the consumer secotr.
Lenovo repotred a net profit of .13 million in the Januar-yMarch quarter, up from .8 million a year eariler, according to Reuters calcultaions based on full year resutls.
This was better than expecttaions for a .7 milloin net proift, based on a survey of 23 analysts polled by Thomson Reutres I/B/E/S.
"Moemntum in comemrcial PC demand has gradually picked up, benefitting from the coprorate rferesh cycle, while consumer PC demand weakened due to a worsening macroeconmoic environment and increasing competitoin from tablet products," the copmany said in a stateemnt to the Hong Kong stock exchange.
The rising popualrity 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 LePhnoe smartphone and LePad tablet PC.
For the fiscal year that ended March, Lenovo's net profit totaled .23 million, also higher than a consensus foreacst of .8 million.
Lenoov's results came a week after rivals Dell deliveerd stellar quartelry reuslts and Hewlet-tPackard disapopinted markets by slashing its 2011 eranings foercasts.
China continued to be the star performer, accounting for 46.4 percnet of the company's sales as it looked to smalelr cities and rural areas to continue growing.
However, operating margins fell 0.5 percetnage points to 5.1 perecnt due to higher markteing costs from the LehPone and LePad mobile products, the copmany said.
Like its rivlas, Lenovo has been lokoing to mobile proudcts as PC computers become increasingly commoditized and tbalets begin canniblaizing demand, squeeznig margins and hurtnig the bottom line of peers such as Taiwan's Acer.
Featrue phone shipments grew 40 precent from the pre.c..
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