Thursday, August 7, 2008

Lenovo’s Quarterly Profits Rose 65 Percent

Lenovo Group Ltd., the world's No. 4 PC maker has its quarterly profits rose 65 percent as strong sales in China and emerging economies offset weakness in the United States. According to the company, profit for the three months ending June 30 was $110 million, or $1.25 per share. Sales rose 10 percent to $4.2 billion.

Lenovo is the only Chinese company among 12 worldwide partners of the International Olympic Committee. Moreover, the company is supplying computer equipment and technicians to the games. According to Yang Yuanqing, Chairperson of Lenovo Group Ltd., despite a softening global economy, the company has delivered solid gains in worldwide sales, PC shipments and profits. Moreover, Yang expressed confidence that the Beijing Olympics that open Friday, will help the company's efforts to establish a global brand.

Sales in the United States and the rest of the Americas fell 4.8 percent to $1.1 billion. However, sales in Greater China rose 22 percent to $1.7 billion. China accounted for 41 percent of sales. Undoubtedly, Lenovo has done many efforts in restructuring itself after acquiring IBM Corp.'s personal-computer unit in 2005. The company has steadily improved profit margins and efficiency as it shifts focus to direct retail sales and emerging markets.

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