Lenovo Announces Q2 Profits

World’s number 2 PC brand, the Lenovo Group Ltd announced its second quarter earnings today. The company has managed to beat the expected estimates. According to Reuters, “the company posted a better-than-expected 88 percent rise in second-quarter profit, helped by acquisitions and an increase in sales in emerging markets such as China.”

The company while announcing its earnings said, “Uncertainties over global economic recovery, the renewed debt crisis in Europe, and tablet PC cannibalization of entry-level consumer PCs remain.”

Lenovo reported today that its second quarter profit remained at $143.92 raised from the last year’s second quarter figures of $76.59 million. The result surpassed the expected average profit forecast of $118.3 million.

Analysts believe that the company’s recent acquisitions in Japan and Germany helped it a lot to leave Dell Inc behind to secure No. 2 spot in the third quarter. The company is now following the market leader Hewlett-Packard Co.

Lenovo took a decision to acquire the Germany’s Medion AG for $900 million in June. It was the biggest acquisition for Lenovo after it had acquired the International Business Machines Corp PC business six years ago.

Prior to Medion deal, Lenovo had signed a deal to joint venture with NEC Corp to offer laptops in Japanese market.

IDC, a research firm reported that the Chinese popular PC brand, Lenovo had a 13.7 percent share of the global PC market in the third quarter. Lenovo is now planning to enter into the smartphone and tablet markets, but still it has a long way to go.

The company’s Hong Kong-listed shares, which have already risen to 12.45 percent in the current year, further gained 4.87 points after the company posted its second quarter profit results.


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