China’s Lenovo Group first-quarter profit more than doubles, beats expectations

FILE PHOTO: A person makes use of his laptop computer subsequent to Lenovo’s logos in the course of the Mobile World Congress in Barcelona, Spain February 25, 2016. REUTERS/Albert Gea

(Reuters) – Chinese private laptop maker Lenovo Group reported a more than two-fold leap in first-quarter profit on Thursday, beating analysts’ estimates due to sturdy efficiency by its private laptop and smart-devices enterprise.

Net profit rose to $162 million within the quarter ended June, in contrast with a mean estimate of $154 million by 9 analysts, in response to Refinitiv information. Revenue rose 5% to $12.51 billion, in step with expectations.

Revenue from Lenovo’s private laptop and sensible units group grew 12%, whereas its cellular enterprise group recorded a 9% fall in gross sales.

The world PC market rose 1.5% within the June quarter after falling for 2 consecutive quarters, as threats of elevated U.S. tariffs on Chinese items prompted some producers to entrance load shipments, business analysts stated.

However, the outlook for the business stays unsure after U.S. President Donald Trump stated on Tuesday that he would postpone imposing an extra 10% tariff on Chinese-made merchandise together with tablets and laptop computer computer systems till December, however would impose the tariffs on desktops from September.

“There is a complexity of macro risks arising from ongoing trade negotiations, import tariff changes implemented by countries and challenges alongside geopolitical uncertainties,” Lenovo stated in its earnings assertion.

The firm is dual-headquartered in China and the United States.

Reporting by Rushil Dutta and Sijia Jiang; Editing by Stephen Coates

Our Standards:The Thomson Reuters Trust Principles.

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