Lenovo revenues up 234pc

10 Aug 2005

Chinese PC manufacturer Lenovo today reported a 234pc year-on-year increase in revenues of HK$19.6bn (€2bn), driven by strong organic growth in emerging markets as well as growth from the acquisition of the former Personal Computing Division of IBM.

“Our results validate the expectations we had when we acquired the business and also reinforce our conviction that we have a model for ongoing profitability,” said Yuanqing Yang, chairman of Lenovo. “I am optimistic about Lenovo’s future as we move forward with important growth initiatives, such as transplanting our successful PC business template in China into other emerging markets.”

Pre-tax profit increased 54pc to HK$515m (€53.2m) and profit attributable to shareholders was HK$357m (€37.1m), an increase of 6pc compared to the prior year’s comparable period.

The Group reported HK$18.3bn (€1.9bn) in turnover in its global PC business. Lenovo’s PC shipments were up 7pc year-to-year and 14pc quarter-to-quarter, the highest comparable quarter of PC shipments on record, based on industry reports.

“Lenovo made solid progress in our first 60 days. Lenovo’s business model of product innovation combined with cost and expense competitiveness delivered profits in both our original and newly acquired businesses,” said Steve Ward, Lenovo’s chief executive officer.

“Our innovative products – like the new ThinkPad X41 Tablet, the Lenovo Yangtian desktop with its one-key virus-kill feature and our award-winning ET960 Smartphone – combined with the commitment of our employees, business partners and suppliers, give us significant competitive advantages.

“We are generating the anticipated benefits of the acquisition quickly, ahead of schedule. Customers are embracing the new Lenovo. Lenovo outpaced the PC industry in emerging markets, and we are focused on driving similar momentum in mature markets,” said Ward.

By John Kennedy