Lenovo reports 88% Q2 2011 profit increase

Growth due to increased sales in emerging markets, acquisitions

Tags: Lenovo Group
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Lenovo reports 88% Q2 2011 profit increase Lenovo has reported an 88% increase in profits year-over-year in Q2 2011.
By  Georgina Enzer Published  November 2, 2011

PC manufacturer Lenovo has posted a better-than-expected 88% rise in Q2 2011 profits year-over-year, due to new acquisitions and an increase in sales in emerging markets, according to Reuters.

Lenovo has reported a profit of $143.92 million for Q2 2011, ending September, up from $76.59m a year earlier.

This result beat an average profit forecast of $118.3m from eight analysts polled by Thomson Reuters.

The company overtook Dell this year to claim the number two spot in the third quarter, behind Hewlett-Packard.

In June this year, Lenovo agreed to buy Germany's Medion AG in a deal valuing the German company at up to $900m, its biggest acquisition since its purchase of International Business Machines' PC business six years ago.

The Medion deal also came months after it signed a joint venture agreement with NEC Corp to sell laptops in Japan.

Lenovo, one of China's best-known consumer brands, had a 13.7% share of the global PC market in the third quarter, according to research firm IDC.

Last week, Lenovo said it expected some constraints on hard disk drive supplies through the first quarter of next year, due to flooding in Thailand, the world's number two hard disk drive supplier.

The company also announced that its chairman, Liu Chuanzi, had tendered his resignation and that chief executive Yang Yuanqing will take over his position.

Lenovo's Hong Kong-listed shares, which have risen 12.45% so far this year, gained 4.87% on Wednesday, versus the Hang Seng Index's 1.88% rise.

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