Lenovo beats estimates with 30p Q1 profit rise
HONG KONG, Aug 16 — Lenovo Group Ltd, the world's No.2 PC maker by sales, posted a 30 per cent rise in quarterly net profit, beating forecasts, though it logged its weakest growth in 1-1/2 years as China's economy slows.
Lenovo, which ranks behind Hewlett Packard Co in PC sales, posted a net profit of US$141.367 million (RM424.1 million) for its April-June first quarter, up from $108.8 million from a year earlier, it said in a statement on the Hong Kong stock exchange today.
The net profit growth is the weakest since the third quarter of fiscal 2010/2011, when the pace was about 25 per cent, based on previously announced data.
Still, the result was better than an average forecast of US$131.2 million in a poll of 10 analysts by Thomson Reuters I/B/E/S.
The ThinkPad maker has been advancing on the global PC stage due to aggressive pricing, overseas acquisitions and a fast-growing home market, though rapid gains in market share have come at the expense of thin profit margins.
Lenovo also faces slowing growth in the market for personal computers and tough competition from the likes of Apple Inc and Samsung Electronics Co Ltd in the fast-growing tablet PC and smartphone space.
Lenovo shares have climbed about 20 per cent so far this year, outpacing rivals such as HP, Dell Inc and Acer Inc. — Reuters