FILE PHOTO: The Lenovo logo is seen in this illustration photo 22 January 2018. REUTERS/Thomas White/Illustration
HONG KONG (Reuters) – china’s Lenovo Group reported a more than three-fold increase in quarterly profit as strong computer sales helped the world’s largest personal computer (PC) maker to beat the market had expected.
Lenovo’s net profit in the quarter ended in March rose to $118 million compared with an average estimate of € 91.4 million by seven analysts, according to Refinitiv data, and compared with a profit of $33 million a year earlier.
“The growth strategy of PC and Smart Device (PCSD) focused on commercial, high growth and premium segments has paid off in delivering record revenue for the fiscal year,” CEO and Chairman Yang Yuanqing said in a statement Thursday.
The turnover increased with 10 percent to $11.71 billion, in line with the average estimate of $11.65 billion by 11 analysts.
For the full year ended March, Lenovo swung to a net profit of $597 million, from a loss of $189 million a year earlier. The turnover rose to a record $51 billion, which Lenovo is mainly attributable to the proceeds from the PCSD business – which accounts for 75 percent of its total revenue.
The global PC market as measured in shipment units decreased by 4.6% in the three months of the year, the estimates of the industry consulting firm Gartner show.
Reporting by Sijia Jiang; Editing by Anshuman Daga