Chinese PC maker Lenovo announced its net profit for the first quarter has increased nearly 13-fold:
The Chinese company posted a net profit of 66.84 million US dollars in the quarter to June, compared with 5.21 million dollars a year earlier as sales soared 13 percent year-on-year to about 4.0 billion dollars.
The company said the earnings result reflects a restructuring charge of about 45 million dollars taken in the first quarter and that it has finally showed signs of growth two years since it bought the IBM's PC unit.
"In the past two years, through the formulation of the right strategy and effective execution, Lenovo's performance is showing signs of growth," said Lenovo Chairman Yang Yuanqing.
Lenovo announced in April plans to cut 1,400 jobs, or five percent of its global workforce, to improve business performance and profits as it continues to integrate IBM's PC unit.
This is expected to result in about 100 million dollars cost savings in the year to March 2008.
More info at PhysOrg.