Lenovo Q1 net doubles to $108 m

PTI Beijing/New Delhi | Updated on March 12, 2018 Published on August 18, 2011

Robust sales in emerging markets drive growth

Lenovo Group today said that its net profit nearly doubled to $108 million in the three-month period ended June 30, 2011, buoyed by strong growth in personal computer shipments and robust performance in emerging markets.

The company’s quarterly performance was primarily boosted by robust sales in emerging markets, which witnessed a 46 per cent jump in PC shipments, and China, where shipments rose 23 per cent.

The Chinese firm had reported a net profit of $55 million for the first quarter ended June 30, 2010.

Sales rose 15 per cent to $5.92 billion during the April-June quarter of the 2011-12 fiscal.

“The board is very satisfied with Lenovo’s first quarter results. Since we adjusted our leadership team in early 2009, our business continues to climb and everything has been executed well according to our original plans,” Lenovo Chairman, Mr Liu Chuanzhi, said in a statement.

The latest figures helped Lenovo emerge as the world’s third largest PC maker in the first quarter, with a market share of 12.2 per cent. During the first quarter, the company’s worldwide PC shipments grew 23.1 per cent year-on-year.

In terms of regions, Lenovo’s sales in emerging markets totalled $1 billion during the first quarter of the 2011-12 financial year. PC shipments across the region increased 46.5 per cent in the quarter, more than three times faster than the average industry growth rate of 14.7 per cent year-on-year.

Lenovo China recorded $2.8 billion in sales. Its PC shipments in the domestic market surged 23.4 per cent year-on-year.

In the developed markets, the company registered $2.1-billion worth of PC sales and shipments in the April-June quarter, an increase of 8.5 per cent vis-a-vis the corresponding period of the previous year.

“The solid execution of the successful ‘Protect and Attack’ strategy fuelled Lenovo’s strong performance in the past fiscal quarter that we have achieved a record high in global shipments, revenue, as well as global market share. At the same time, we outperformed the industry in all geographies, customer segments and product segments,” Lenovo CEO, Mr Yang Yuanqing, said.

Published on August 18, 2011

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