Lenovo posts higher profits
China based Personal computer maker Lenovo Group has posted 22% increase in profits during the July-September quarter. However, this result ended up disappointing the markets as they had expected better numbers especially now that they own the Personal Computer division of the tech giants IBM (International Business Machines Corp.).
Lenovo now happens to be Asiaâ€™s largest PC manufacturer and their quarterly profits totaled 354 million Hong Kong dollars ($45 million). The revenue figures were 28.5 billion Hong Kong dollars ($3.6 billion). The company said in a statement: “The new Lenovo is already showing signs of achieving its potential, although we have much yet to do. The response of our customers has been very positive as they begin to see evidence of the complementary strengths of the two organizations.”
However, the news still could not help the company as their shares lost around 5.3 percent in Hong Kong trading following the announcement. They have been however showed much success in turning around the IBM’s personal computer business, which had been losing money from 2001 through at least the first half of 2004.