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Lenovo reports 12-fold jump in profits
Lenovo Group, the world's third-largest personal computer maker, said Thursday its net profits increased 12-fold in its first fiscal quarter as the company's ongoing efforts to cut costs and operate more efficiently yielded results.
"The steps we have taken for enhanced operational efficiency and expense control positioned Lenovo to take advantage of a rising worldwide PC market and deliver another solid quarter across all regions," Chief Executive William Amelio said in a statement.
The jump in profits came after the Chinese PC maker announced in April a plan to cut costs worldwide, by shedding five percent of its global workforce. According to the company, net profit in the three months ended June rose to $66.8 million from $5.2 million a year earlier. PC shipments increased by 22 percent, faster than the industry's average growth of 13 percent. Lenovo's biggest gains came from China, where PC shipments rose 30 percent, while Europe and the Americas saw shipments rise 22 and 15 percent, respectively.
Lenovo has successfully established as a global brand, going from a company that operated solely in China to a company with profitable operations around the world. The company remains the world's third-largest PC maker behind HP and Dell, but faces pressure from Taiwanese rival Acer, which has aims to overtake Lenovo as No. 3 by the end of this year.
"The steps we have taken for enhanced operational efficiency and expense control positioned Lenovo to take advantage of a rising worldwide PC market and deliver another solid quarter across all regions," Chief Executive William Amelio said in a statement.
The jump in profits came after the Chinese PC maker announced in April a plan to cut costs worldwide, by shedding five percent of its global workforce. According to the company, net profit in the three months ended June rose to $66.8 million from $5.2 million a year earlier. PC shipments increased by 22 percent, faster than the industry's average growth of 13 percent. Lenovo's biggest gains came from China, where PC shipments rose 30 percent, while Europe and the Americas saw shipments rise 22 and 15 percent, respectively.
Lenovo has successfully established as a global brand, going from a company that operated solely in China to a company with profitable operations around the world. The company remains the world's third-largest PC maker behind HP and Dell, but faces pressure from Taiwanese rival Acer, which has aims to overtake Lenovo as No. 3 by the end of this year.
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