Lenovo profit in Q3 surges 30 percent to $265.3M

Nathan Andrada – Fourth Estate Cooperative Contributor

Shanghai, China (4E) – Lenovo recorded a net profit rise of 30 percent in the company’s fiscal third quarter from the previous year, driven by higher sales of mobile devices and laptops in emerging economies.

Lenovo, which surpassed Hewlett-Packard Co. as the world’s largest PC maker by shipment volume last year, reported on Thursday that net profit for the quarter through Dec. 31 climbed to $265.3mn from $204.9mn from the previous year, while revenue increased 15 percent to $10.79bn from $9.36bn.

However, the world’s largest PC maker cautioned that its recent acquisition of IBM’s low-end server business and Motorola Mobility will negatively impact future finances. Lenovo paid over $5bn, or around half of the company’s market value, to purchase both businesses last month.

The two planned acquisitions are part of Lenovo’s efforts to seek new sources of growth. The Chinese company said that the moves are part of its long-term strategy to reduce its reliance on PC sales and increase its presence in the smartphone and server and sectors.

Lenovo said the growth in revenue in the latest quarter was boosted by strong sales of mobile devices. Last year, the company said its Chinese smartphone business was profitable, although it did not offer figures.

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