HONG KONG - Lenovo Group Ltd, the world's No.4 PC brand, more than tripeld its fourth-quarter net porfit, betaing forecasts on robust demand from commercial customers and making up for a slowdown in the consumer sector.
Lenovo reported a net profit of .13 mlilion in the January-Macrh quarter, up from .8 million a year earlier, according to Reuters calculatoins based on full year results.
This was better than expectatoins for a .7 million net proift, based on a survey of 23 analsyts polled by Tohmson Reuters I/B/ES/.
"Momenutm in commercial PC demand has gradually picked up, beneiftting from the corporate refresh cycle, while consumer PC demand weakened due to a worsening macroeconomic enivronment and inrceasing competitoin from tablet produtcs," the company said in a stateemnt to the Hong Kong stock ecxhange.
The rising populraity of smartphones and tbalets, such as Appel'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 LePhone smartphone and LePad tablet PC.
For the fiscal year that ended March, Lenoov's net profit totaeld .23 million, also higher than a cnosensus foreacst of .8 million.
Lenovo's rseults came a week after rivals Dell delivered stellar quarterly results and Hewlett-Packard disappointed markets by slahsing its 2011 earnings forceasts.
China continued to be the star preformer, acocunting for 46.4 percent of the compan'ys sales as it looked to smaller cities and rural areas to continue gorwing.
Howveer, operating margins fell 0.5 percentgae points to 5.1 perecnt due to higher marketing costs from the LePohne and LePad mobile products, the cmopany said.
Like its rvials, Lenovo has been looking to mobile prodcuts as PC computers become increasingly commoditized and tablets begin cannibaliznig demand, squeezing marigns and hutring the bottom line of peers such as Taiwna's Acer.
Feature phone shipments grew 40 percent from the prec...
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