Lenovo in III finkvartal reduced net profit by 67%, worse than forecast
Chinese Lenovo Group Ltd., one of the world’s largest manufacturers of personal computers, cut its net profit in the third fiscal quarter (October-December) by 67% relative to the same period a year earlier to $97 million
According to a press release, revenue decreased by 6% to $12.2 billion.
Thus, the gain is reduced already by the end of the fifth quarter in a row. The profit was worse than the average forecast of analysts polled by Thomson Reuters of $159.5 million, according to MarketWatch.
Chairman of the Board of Directors of Lenovo Yang Wantin said that the business of producing smartphones, companies can reach a profitable level by the end of 2017. However, division data centers will remain unprofitable for at least another year against high competition.
In the last quarter, Lenovo’s core business on the production of PCs grew, while the smartphone division and data centers showed an operating loss, despite attempts over two years to bring them back to profit .
Stock quotes Lenovo at auction Thursday in Hong Kong fell by 6.7%.
According to the research company IDC, the share Lenovo accounted for 22.4% of the world’s supply of personal computers.