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Lenovo Achieves the Highest Turnover in Four Years

Lenovo has announced the results of the fiscal third quarter, ended December 31, 2018. It has recorded the group’s highest turnover in four years, with 14,000 million dollars, up 8.5% over the previous year (12.8% excluding the impact of the currency exchange rate). The company has obtained a strong turnover of 350 million dollars before taxes (up 133% more in relation to the previous year, 200 million dollars), a record for the company, since all businesses have reported increases in profits.

The Lenovo computer manufacturer offices - Braehead Glasgow
The Lenovo computer manufacturer offices – Braehead Glasgow (Image Credit: Ian Rainey and licensed for reuse under Creative Commons Licence)

The Group has recorded a net profit of 233 million dollars during the fiscal quarter, which has improved significantly after the loss of 289 million dollars net in the same quarter last year. Basic earnings per share in the fiscal third quarter were 1.96 US cents or 15.35 cents HK.

“When we set our strategy based on intelligent transformation, our goal was to restore and accelerate Lenovo’s business, while providing our customers and partners with the best technologies in IoT, intelligent infrastructure and smart vertical solutions. We have done exactly that and much more, our strength and position as the most productive global technology company in the industry is firmly established. The most gratifying thing is to see how Lenovo is reversing the current trend in the industry. We are strong, we have presented record results this quarter and, each time, they are more positive, “said Yang Yuanqing, president and CEO of Lenovo.

Overview by Business Groups:

  • During the quarter, the PC and Smart Devices business (PCSD) reached revenues of USD 10,700 million, which represented a growth of 11.6% year-on-year, and contributed to sequentially improving the Group’s results regarding the previous quarter. PC revenues have increased by 16% compared to the previous year, outperforming the market by more than 17 points, and the PTI margin has also improved by 1 percentage point. Lenovo has maintained its position as the undisputed world leader in PC sales with a record market share of 24.6%. A focus on premium and high-growth segments have allowed workstations, thin and light devices, and Visuals revenues to outstrip the market by more than 30 points, gaming by 16 points and Chromebook by more than 220 points.
  • The Mobile Business Group (MBG) area, which is part of the IDG business, has obtained benefits for the first time worldwide since the acquisition of Motorola in October 2014. This achievement has been achieved thanks to the masterful execution of Lenovo’s strategy to reduce expenses, rationalize the Group’s product portfolio and focus on the main markets. It should be noted that North America has recorded a quarter of great growth for the Group with volumes that exceed the market figures by 40 points. In addition, MBG’s focus on other specific geographies is also showing significant results: Lenovo maintains the number 2 position in Latin America, despite currency fluctuations and supply restrictions. In China, Lenovo brand has introduced a range of new products.

Lenovo’s Data Center Group (DCG) business reported its fifth consecutive quarter of growth in terms of profits (the PTI margin rose 3.6 percentage points compared to the previous year), with a 31% increase in revenue, and reaching 1,600 million dollars. In fact, DCG recorded revenue growth year after year in all geographies, highlighting a three-digit increase in North America and a double-digit increase in Asia-Pacific, EMEA, and Latin America. The joint venture with NetApp, which is already operational in China, will further strengthen the portfolio and expand business opportunities. Hyperscale, once again, it has contributed significantly with a growth in the three-digit turnover and an increase in the revenues of the Infrastructure defined by software (SDI) of almost 70% year-on-year. The Group not only remains as number 1 in the TOP500 list of supercomputers worldwide but also increased its leadership

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