Lenovo beats PC market with 59% quarterly profit surge

Chinese PC maker Lenovo, the world's second largest computer maker, announced fourth quarter financial results yesterday, revealing record sales and a 59% rise in quarterly profits as it took full advantage of booming sales on its home turf and emerging markets.

While the PC industry as a whole has struggled to maintain consumer demand for computers, the Beijing-based computer manufacturer has continued its growth spurt with a 44% increase in worldwide shipments during the fourth quarter as well as reporting an increase of 46% in operating profits over the same quarter last year. Sales for the fourth quarter period rose by 54% to $7.5 billion, with a record pre-tax income increase of 69% to $102 million.

"During the fourth fiscal quarter, Lenovo was the fastest growing among the top PC vendors in Global Emerging Markets, and Commercial Markets, as well as Consumer Markets and Mature Markets, where for the first-time ever, we reached double-digit market share in both. We furthered our leadership position in the Global Emerging Markets, in which Lenovo already achieved double digit-market share in 15 markets and became number one in India," said Yang Yuanqing, Lenovo's Chairman and CEO in a statement.

For the full fiscal year ended in March, Lenovo reported that PC shipments grew by 34.9% year-over-year, with gross profit up 46% to $3.4 billion. The firm's operating profit jumped 53% percent to $584 million.

"The 2011/12 fiscal year was a record-setting year for Lenovo, where we set an all-time high for revenue, shipment, market share and pre-tax income. Our fiscal year ended impressively with strong momentum. Lenovo’s global PC shipments grew by 35% year-over-year, outperforming the industry by ten times, global market share increased by three percentage points, and net profit jumped by 73% year-over year," said Yuanqing.

Laptop shipments increased by 44% during the fourth quarter period, with the category accounting for 56% of the firm's total sales, with consolidated sales up 41% to $4.2 billion year-on-year. Desktop PC shipments grew by 43% worldwide, year-on-year, and sales of desktop computers grew by 45% to $2.4 billion, accounting for 32% of the firm's total worldwide sales.