Lenovo net up 88% at $144 mn in July-Sept
Lenovo Group, which has pipped Dell as the second largest computer vendor, Wednesday posted 88 percent jump in net profit to USD 144 million for three months ended September 30, 2011, helped by an increase in sales in emerging markets such as China, India and Brazil.
The Chinese firm had net profit of USD 77 million in the July-September period of 2010, Lenovo said in a statement.
"In just two quarters, Lenovo has gone from the number four to the second largest PC vendor in the world," Lenovo chairman Liu Chuanzhi said.
The company's sales in the second quarter of current fiscal climbed to USD 7.78 billion, an increase of 35 percent year on year.
"Lenovo's performance this quarter was outstanding. Despite significant investments for future growth, pre-tax income increased and the Company over-achieved its targets.
"... We achieved balanced growth across all markets, product categories and geographic regions. In China, we continued to extend our lead, while in emerging markets we have been growing more than three times the market growth rate," Chuanzhi added.
The company's robust quarterly number helped Lenovo to become the world's second-largest PC vendor with a market share of 13.5 percent beating rival Dell.
Hewlett-Packard remains the largest vendor, with 17.7 percent market share. Lenovo moved into the second spot, with 13.5 percent market share and Dell now has 11.6 percent share, according to Gartner Inc.
Despite global PC sales falling on account of slowing demand , Lenovo has continued to post double-digit growth in shipments for the last few quarters.
During the second quarter, Lenovo's worldwide PC shipments grew 35.8 percent year-over-year, seven times the industry growth rate of 5 percent worldwide for the same period. This is the tenth consecutive quarter that Lenovo has grown faster than the industry.
In emerging markets, Lenovo grew more than three times faster than the industry, with PC shipments in the region up 37.9 percent, compared to an average industry growth rate of 10.9 percent.
"Leading the way, were Brazil, India, Latin America and Russia, all of which saw an average year-over-year gain of 42 percent in PC shipments during the second quarter," Lenovo said.
Lenovo's market share in the emerging markets region climbed to eight percent during the second fiscal quarter, highlighted by double-digit market share in both India and Russia.
The company's consolidated sales in the emerging countries for the quarter increased 20.8 percent year-over-year to USD 1.3 billion, or 16.6 percent of the Lenovo's total worldwide sales.
Lenovo China achieved USD 3.2 billion in consolidated sales in the second fiscal quarter, a gain of 20.7 percent year-over-year, accounting for 41 percent of the company's worldwide sales. Besides, the company's PC shipments in the country grew 25.8 percent year-over-year in the quarter.