Lenovo reported its net profit in the third quarter were nearly three times higher from a year earlier. MarketWatch reports:
China's largest PC maker by revenue said it faces a potential slowdown in demand from the U.S., where it derives 25% of its revenue, but it expects double-digit growth in the global PC market this year, driven mainly by Asia and other emerging markets.
"Despite increasing economic uncertainties, we remain confident in our ability to continue to deliver profitable growth that outpaces our industry," Lenovo Chief Executive William Amelio said. "The U.S. market is in a potential slowdown...we are pretty insulated from it."
Strong PC shipments propelled Lenovo's net profit in the three months ended Dec. 31 to US$171.7 million from US$57.7 million a year earlier.
Revenue rose 15% to US$4.60 billion from US$4.00 billion.
The company said its PC shipments and sales rose in the double digits across all operating regions in the third quarter.
Lenovo said its gross margin in the third quarter rose to 15.2% from 13.5% a year earlier.