Lenovo Reports 19 Percent Jump in Q2 Profit on PC Sales

Lenovo Group Ltd, the world’s biggest maker of personal computers (PCs), said net income jumped 19 percent in the second fiscal quarter, beating estimates, as it tightened its hold over global PC sales even as the broader market shrunk.

The company also announced a dividend payment of HK$0.06 ($0.0077) per share to stockholders.

The Beijing-based company reported $262 million (roughly Rs. 1,610 crores) in net income, exceeding the $260 million (roughly Rs. 1,600 crores) expected by analysts, according to Thomson Reuters SmartEstimates. Revenue for the three-month period rose 7 percent to $10.5 billion (roughly Rs. 64,400 crores).

Lenovo is now ramping up its assault on new product markets after closing in recent weeks two multi-billion-dollar acquisitions for IBM’s low-end server business and Google’s Motorola handset unit.

The company additionally named Jerry Yang, the Yahoo Inc co-founder, to its board of directors. Yang, who is also an Alibaba Group Holding Ltd director, formerly served as a Lenovo board observer.

Shares of Lenovo were flat at the midday close before the earnings announcement, compared with a 0.1 percent decline in the benchmark Hang Seng index.

Source-NDTV