the republic logo

Lenovo reports 19 percent rise in quarterly profit on sales growth outside China

bug
Share/Save/Bookmark

BEIJING — Lenovo Group, the world's biggest personal computer maker, said Thursday its latest quarterly profit rose 19 percent, driven by sales growth outside its home China market.

Profit rose to $262 million, or 2.5 cents per share, in the three months ended Sept. 30, the company said. Revenue rose 7 percent to $10.5 billion.

Lenovo, with headquarters in Beijing and in Research Triangle Park, North Carolina, is in the midst of a multibillion-dollar effort to expand beyond its traditional PC business into mobile devices, infrastructure to support them and business services.

Last month, it completed its $2.9 billion acquisition of Motorola Mobility from Google Inc., which Lenovo said made it the third-largest global smartphone manufacturer. In September, the company announced the completion of its $2.1 billion purchase of IBM Corp.'s low-end server business.

"Mobile and Enterprise are now our new growth engines, and over time, like PCs, they will become our profit pool as well," said chairman Yang Yuanqing in a statement.

Quarterly sales in China declined 2 percent from the same quarter last year, offset by a 33 percent rise in Europe, the Middle East and Africa and a 3 percent rise in the Asia-Pacific region. Sales in North America were flat.

Sales of smartphones, tables and other mobile devices declined 6 percent while those of Lenovo's traditional desktop PCs rose 6.4 percent. The company said smartphone shipments rose 38 percent.

Also Thursday, Lenovo announced the appointment of Yahoo Inc. co-founder Jerry Yang as an independent non-executive member of its board of directors.

Think your friends should see this? Share it with them!

Story copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.


We also have more stories about:
(click the phrases to see a list)

Category:

Follow The Republic:

All content copyright ©2014 The Republic, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.