Lenovo profit up 133%
Lenovo Group, the world’s No. 4 PC maker, said Thursday that earnings for its latest quarter rose 133% as strong sales in China and Europe offset slower growth in the United States.
Profit totaled $140 million for the three months ending March 31, the Beijing-based company said. Total revenues rose 13.5% to $3.7 billion.
"Lenovo continued to demonstrate strong execution of our strategies in the past quarter, achieving the eighth consecutive quarter of profitable growth," said chairman Yang Yuanqing said in a statement.
Yang said Lenovo will focus on boosting sales in developing countries and expanding its retail business.
Sales in China, which accounts for about one-third of Lenovo revenues, rose 18% to $1.29 billion in the quarter. Sales in Europe, Africa and the Middle East were up 30% at $879 million, the company said.
Sales in the United States and the rest of the Americas rose just 9% to $1 billion, Lenovo said.
For the full fiscal year ending March 31, earnings rose 201% to $484 million, Lenovo said faxless payday loans. Full-year sales rose 17% year to $16.4 billion.
Lenovo has reported similar improvements in results in previous quarters, with profit growing faster than revenues, which it says is due to cost-cutting. The company said it boosted its gross profit margin last year from 13.5% to 15%.
Lenovo bought IBM Corp.’s personal computer unit in 2006 and said last year it had completed integrating the acquisition into its own business. Lenovo had the right to use the IBM (IBM, Fortune 500) name on some products but said earlier it plans to discard it this year.