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Lenovo posts 7.6% rise in 4th-quarter profit
(Agencies)
Updated: 2004-06-03 15:28
Lenovo Group Ltd, China's largest PC maker, Wednesday reported a 7.6 per cent
jump in its fiscal fourth-quarter net profit, below analysts' expectations, and
executives said they have put plans for international expansion on hold.
Lenovo, which changed its name from Legend Group earlier this year, said it
earned HK$188.3 million (US$24.2 million) during the three months ended March
31, from HK$175.1 million in the same period a year earlier. Net profit for the
full year ended March 31 was HK$1.05 billion, up 3.5 per cent from HK$1.02
billion.
Fourth quarter revenue was HK$5.03 billion (US$645.9 million), up 17.8 per
cent from HK$4.27 billion a year ago. The company's fourth-quarter operating
profit fell 15 per cent, dragged down by losses in mobile phones and IT
services.
Executives said they expect the mobile phone business to turn profitable
Lenovo's PC market share slipped to 27 per cent at the end of the fiscal year
from 29 per cent a year earlier. The company said its PC unit shipments grew
15.1 per cent during the year. But the unit volume of China's PC market overall
grew 18.3 per cent, according to research firm International Data Corp.
Lenovo Chairman Liu Chuanzhi said: "It will take about two or three more
quarters before you can have a full picture of the fruits of our labor."
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