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Lenovo posts income gains on strong laptop sales

PC maker Lenovo Group posted double-digit percentage increases in sales and net income for its first fiscal quarter, boosted by laptop sales, the company announced Thursday.

Lenovo, based in Hong Kong, reported a net income of US$110 million for the quarter that ended June 30, up more than 65 per cent from the US$67 million net income in its first fiscal quarter of 2007. Sales for the quarter were up more than 10 per cent from US$3.8 billion in the first quarter of 2007 to US$4.2 billion in the latest quarter, the company said.

The company’s laptop sales totaled US$2.4 billion for the quarter, up 17 perc ent from a year ago. Lenovo’s laptop shipments increased 33 per cent from last year. The company’s desktop sales increased by just three per cent. Overall, PC shipments increased by nearly 15 per cent, about average growth for the PC industry, the company said.

Lenovo’s Greater China division posted US$1.7 billion in consolidated sales, up 22 per cent from the year before, and its Americas division posted US$1.1 billion in sales, the same amount as in the first quarter of 2007. The weak U.S. economy contributed to a lack of growth in sales there, the company said. Sales in Lenovo’s Europe, Middle East and Africa region grew 26 per cent from a year earlier, and sales in Asia Pacific, not including China, grew 11 per cent.

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