Lenovo doing well - profit triples

Posted on Thursday, Jan 31 2008 @ 15:21 CET by Thomas De Maesschalck
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.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

Loading Comments