PC maker, Lenovo Group Thursday reported a jump in third-quarter profits, even as its turnover during the period remained flat compared to one year ago.
Lenovo reported a profit attributable to shareholders of $57.7 million (£29.4m) on sales of $4 billion (£2.04bn) during its fiscal third quarter, which ended on 31 December 2006. This amounts to a 23% increase in profits compared to the same period during the previous fiscal year, when Lenovo reported a profit of $46.8 million on sales of $4 billion, the company said in a filing with the Hong Kong stock exchange.
On a sequential basis, the results show good news for Lenovo. The company saw its profit fall by 53% during the first half of its fiscal year – from $91.2 million to $43.1 million – compared to the year-ago period.
Lenovo's PC shipments during the quarter increased 8% over the previous year, outpacing the industry average, which the company pegged at 7%, the filing said.
As usual, China was a strong market for Lenovo, with PC shipments up 19%. The company also saw shipments rise by 3% in Europe, the Middle East and Africa. But Lenovo's PC shipments slipped 4% in North and South America due to weaker demand from large companies. Shipments fell by 1% in the Asia-Pacific region, excluding China, Hong Kong and Taiwan.
Around 52% of Lenovo's revenue came from notebook PCs, as unit shipments rose 20% over the previous year, Lenovo said. Desktop shipments rose 2%, contributing 43% of the company's total revenue.
The remainder of Lenovo's revenue came from the sale of mobile phones, which contributed 4% of revenue. Handset shipments fell by 6% compared to the previous year, said the PC maker.