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Lenovo Q1 net doubles to $108 mn

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Press Trust of India Beijing/New Delhi
Last Updated : Jan 20 2013 | 11:53 PM IST

Chinese computer-maker Lenovo Group today said 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 primaril boosted by robust sales in emerging markets, which witnessed a 46% jump in PC shipments, and China, where shipments rose by 23%.

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

The company's sales rose by 15% 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 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%. During the first quarter, Lenovo's worldwide PC shipments grew 23.1% 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. Lenovo's PC shipments across the region increased dramatically by 46.5% in the quarter, more than three times faster than the average industry growth rate of 14.7% year-on-year in this region.

Lenovo China recorded $2.8 billion in sales during the the quarter under review. Its PC shipments in the domestic market surged by 23.4% year-on-year in the quarter.

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

"The solid execution of the successful 'Protect and Attack' strategy fueled 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 Yang Yuanqing said.

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First Published: Aug 18 2011 | 2:10 PM IST

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