Lenovo Q1 Profit Up 64% Amid Strong PC Performance
Lenovo has posted a 64 per cent year-on-year rise in first-quarter net profit, with chairman and CEO Yuanqing Yang pointing to “strong profits” delivered by its PC business.
Lenovo posted net profit for the quarter of US$173 million (around $224 million), exceeding analyst expectations – as reported by Reuters, this was more than a US$130.1 million average of analysts polled by Thomson Reuters SmartEstimates.
Revenue of US$10.1 billion, however, was down 6 per cent year-on-year, with Yang noting challenging industry conditions.
“Although the macro-economy and our industries remain challenging, causing a decline in our revenue, we significantly improved our profit year-on-year through innovative products and strong execution,” he commented.
“Our PC business delivered strong profits and our smartphone business stabilised compared to last quarter.”
In its PC and Smart Device Business Group, including PCs and tablets, Lenovo posted quarterly sales of US$7 billion, down 7 per cent year-on-year, shipping 13.2 million PCs in the quarter, a 2.3 per cent decline.
In its Mobile Business Group, including products from Motorola and Lenovo-branded mobile phones, Lenovo posted quarterly sales of US$1.7 billion, down 6 per cent year-on-year.
“Going forward, in PCs we will focus on high-growth segments and leverage industry consolidation to resume growth,” Yang stated.
“In smartphones, we will leverage innovative, differentiated products and continue to shift to higher-price bands to drive growth and turn around this business. In data centres, we will continue to expand in hyperconverged technology, and improve profitability in the hyperscale business.”