Lenovo Group’s Q1 net profit more than doubles

Chinese personal computer maker Lenovo Group Ltd. announced on Thursday that its fiscal first-quarter net profit more than doubled, buoyed in part by higher revenue from its personal-computer and smart-devices business.
Net profit for the three months ended June surged to $162 million from $77 million a year earlier, the company said in a stock exchange filing. Revenue climbed 5 percent to $12.51 billion.
The technology company was expected to post a net profit of $147.1 million, according to FactSet. Lenovo’s gross profit margin for the quarter went up by 16.4 percent from 13.7 percent a year earlier.
Lenovo said it would continue to strengthen its competitiveness in its target markets to sustain profitable growth. Yet it warned that there were “macro risks arising from ongoing trade negotiations, import tariff changes implemented by countries and challenges alongside geopolitical uncertainties.”
The company plans to launch up to six new cellphone models in the coming quarter, saying it would “promptly act” on industry consolidation opportunities, particularly in the premium and high-growth segments.
Source: MarketWatch