Lenovo Posts Higher FQ1 Profit

Lenovo Group

reported a 23% rise in its net profit for the fiscal first quarter. The Beijing, China-based company posted a quarterly net profit of $214 million, versus $174 million, in the year-ago period. However, analysts were expecting a net profit of $198 million. Lenovo's operating profit gained 40% to US$283 million, while basic earnings per share came in at 2.06 US cents, or 15.97 HK cents. Its revenue climbed 18% to $10.4 billion versus $8.79 billion. Revenue in China rose 2% y/y to $3.8 billion, while revenue in Europe/Middle East/Africa (EMEA) jumped 49% to US$2.8 billion. Asia Pacific's revenue climbed by $270 million to $1.6 billion, while revenue in the Americas jumped 19% to $2.2 billion. Lenovo's smartphone shipments surged 39% to 15.8 million units. Its PC shipments climbed 15% to 14.5 million units in the quarter. Laptop sales also jumped 12% in the quarter. Gross profit jumped 13% to $1.3 billion. “This has been a quarter of milestones for Lenovo – record PC share, a number three ranking in worldwide tablets for the first time, and an even stronger number four global smartphone position,” said Yuanqing Yang, Chairman and CEO of Lenovo. Lenovo shares fell 0.64% to close at $29.40 yesterday.