Lenovo’s fourth quarter profit doubles as shipments grow rapidly
Posted by: admin in Industry NewsFiled under: Earnings reports, Products and services, Industry, Dell (DELL), Hewlett-Packard (HPQ)
Lenovo Group Ltd. (OTC: LNVGY), which purchased IBM Corp.’s (NYSE: IBM) PC assets years ago, reported an outstanding financial quarter of this week. The Chinese company saw dramatic shipment increases into emerging markets as well as the Americas (even with weak demand in the U.S.). Shipments grew the fastest in the European region, with a 30% growth rate from the year-ago period.
Lenovo is behind Hewlett-Packard Co (NYSE: HPQ), Dell, Inc. (NASDAQ: DELL) and Taiwan’s Acer in terms of global Personal computer sales, but don’t tell it that. The company’s fourth-quarter profit more than doubled to $140 million from the $60 million year-ago quarterly figure. In the Personal computer industry, that’s a jump extraordinaire. Even though the Personal computer industry’s growth rose 15% in the company’s latest quarter, Lenovo topped that with an overall growth figure of 21%.
This is even more startling taking into account that Lenovo exports quite a bit to the U.S., which is in the midst of a consumer and business spending slowdown. This is where it comes in handy to have your sales dispersed in such a way that one region of the world doesn’t make or break your company. This is the fruits Lenovo is enjoying at the moment, as it has a very evenly distributed sales mix in every global region. Meanwhile, 60% of Dell’s 2007 sales came from the Americas only — and we wonder why the company’s sales have faltered.
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