Turnover And Profit Decline For Lenovo

The purchase of Motorola and parts of IBM’s server business is Lenovo still hard in the stomach: despite a revenue jump of 21 percent, the profit fell 37.

Lenovo recorded a hefty turnover in the last quarter, but the acquisitions pushed the profit. The revenues of the world’s largest PC manufacturer rose despite headwinds due to the strong dollar in the previous year to 21 percent to $11.3 billion, Lenovo announced on Thursday.

The profit in the closed end of March fourth fiscal quarter but fell 37 percent to $100 million. Charges related to acquisitions in the amount of $94 million were a trigger. Lenovo must digest the purchase of mobile phone pioneer Motorola and a part of IBM’s server business, according to cellphoneexplorer.

The PC business was Lenovo’s most important pillar with revenues of $7.2 billion. In weak years market, the company was able to increase sales in the last quarter to 2.7 percent to 13.3 million units. That gave the Chinese a market share of 19.5 percent. The Division boosted the operating profit by 11 percent to $391 million.

With 18.7 million smartphones, Lenovo remained the world’s number three. The paragraph about the leaders Samsung and Apple is very large. In the full fiscal year there were 76 million units – sold in a quarter as much as market leader Samsung. China was still the most important sales market for Lenovo with a share of nearly 60 percent. (dpa) / (axk)