PC maker Lenovo beats street estimates, profits jump by 25%

Lenovo - Better Than Expected Result in Q3, 2010

Lenovo – Better Than Expected Result in Q3, 2010

Lenovo Group Ltd., one of the biggest computer companies of the world saw its net profit jump by 25% in the third quarter of 2010 due to a fall in component costs and an appreciating Yuan.

Net profit for the three months to December 2010 was reported at $99.6 million (£61.8 million), a jump of 25% from $79.5 million reported over the same period in 2009.

Analysts had forecasted a net profit of around $86 million.

Lenovo said that growth may now slow down due to weak economic conditions in the US and Europe.

In a statement, the company said: “Worldwide PC market growth has further moderated in the quarter, and certain challenges in the global economy and the debt crisis in mature markets remain”.

Lenovo’s main line of business – the personal computers segment, has witnessed demands weakening in its main markets. The weak demand in developed economies has been somewhat compensated by strong demand from emerging economies, excluding China.

Lenovo’s biggest market – China, witnessed a demand growth of 18% in Q4, while demand in the US and Europe was up by 22%.

Sales in emerging markets, in comparison, jumped by 34% in the third quarter of 2010.

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