Lenovo posts 7.6% rise in 4th-quarter profit
(Agencies)
Updated: 2004-06-03 15:28

Lenovo Group Ltd, China's largest PC maker, Wednesday reported a 7.6 per cent jump in its fiscal fourth-quarter net profit, below analysts' expectations, and executives said they have put plans for international expansion on hold.

Lenovo, which changed its name from Legend Group earlier this year, said it earned HK$188.3 million (US$24.2 million) during the three months ended March 31, from HK$175.1 million in the same period a year earlier. Net profit for the full year ended March 31 was HK$1.05 billion, up 3.5 per cent from HK$1.02 billion.

Fourth quarter revenue was HK$5.03 billion (US$645.9 million), up 17.8 per cent from HK$4.27 billion a year ago. The company's fourth-quarter operating profit fell 15 per cent, dragged down by losses in mobile phones and IT services.

Executives said they expect the mobile phone business to turn profitable

Lenovo's PC market share slipped to 27 per cent at the end of the fiscal year from 29 per cent a year earlier. The company said its PC unit shipments grew 15.1 per cent during the year. But the unit volume of China's PC market overall grew 18.3 per cent, according to research firm International Data Corp.

Lenovo Chairman Liu Chuanzhi said: "It will take about two or three more quarters before you can have a full picture of the fruits of our labor."

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