Lenovo Hits 34% Jump In Q3 Profit At $204.9 Million

Lenovo is the second large PC manufacturing company.  The company has reported a 34% jump for their third quarter profit numbers.  Their net income has climbed to $204.9 million in the three months ended December 31st from $153.5 million one year earlier.  This excludes a $19.9 million one-time gain.  The company’s sales jumped 12% to $9.36 billion.

Lenovo reported an 8% increase in PC shipments, which is the only increase out of the four largest PC companies.  Lenovo also developed tablets and smartphones throughout the year.  Lenovo’s revenue in China grew 17% to $4.1 billion in the quarter.  Their revenue in North America climbed 8% to $1.3 billion.

The one-time gain reported in the net income was related to the elimination of an accounting provision following the completion of a takeover.

“Our PC business is healthy and will continue to get stronger,” stated Lenovo CEO Yang Yuanqing.  “Beyond the PC we have built a strong foundation for the PC-plus business, which is growing even faster.”

Lenovo’s strategy going-forward includes acquisitions and strategic alliances.  The company may even partner with BlackBerry to distribute software on their mobile devices.  One of Lenovo’s best known acquisitions was IBM’s PC division in 2005.  Lenovo acquired CCE for $147 million this past month too.

[Source: Bloomberg]

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