PC maker Lenovo returns to profit in third quarter on strong performance across business groups
- Revenue up 8.5 per cent on strong performance in major businesses, with mobile group posting first pre-tax profit since Motorola buy
Chinese PC maker Lenovo Group said on Thursday it swung to a net profit in the three months through December, beating market expectations, due to strong performance across its major business groups.
Profit for the quarter reached US$233 million, versus a loss of US$289 million in the same period a year earlier when the world’s largest personal computer (PC) maker by shipments took a one-off hit due to US tax reform.
The result was ahead of the US$207 million average of 10 analyst estimates compiled by Refinitiv.
Revenue rose 8.5 per cent to US$14.04 billion, the highest in four years and in line with analyst estimates.
Lenovo’s mobile phone business also recorded a pre-tax profit – of US$3 million – for the first time since it bought Motorola Mobility in 2014 for US$2.9 billion. Revenue nevertheless declined 20 per cent, with Lenovo attributing the fall to a strategy of focusing on core markets.