Lenovo's profits grow -

Lenovo has unveiled a third straight quarterly profit.

It posted a net profit of $54.86 million for the April-to-June first financial quarter, against the $16 million loss it made a year ago. Its sales also rose by almost 50 percent to $5.15 billion, up from $3.44 billion last year.

During its first fiscal quarter Lenovo said its worldwide PC shipments increased 48.1 percent year-over-year, compared to the industry’s growth rate of approximately 20.9 percent worldwide for the same period.

It claims its quarterly figures show it is the fastest growing of the top five PC manufacturers. During the first quarter, Lenovo achieved for the first-time ever, double-digit market share worldwide, and recorded its lowest-ever quarterly expense-to-revenue ratio. It added that its  gross profit for the quarter increased 38.6 percent year-over-year to US$523 million and it had been helped by a rebound in global demand, which had helped it achieve "a historic high market share of 10.2 percent".

Lenovo China grew its consolidated sales in the first fiscal quarter by 50 percent year-over-year to US$2.5 billion, accounting for 48.7 percent of the Company’s worldwide sales.

During the quarter, Lenovo further strengthened its number-one position in China to an industry-leading market share in China of 28.7 percent. Lenovo’s PC shipments in China increased 42.8 percent year-over-year in the quarter, exceeding the overall industry increase of PC shipments in China of 30.9 percent.  In Emerging Markets Lenovo’s consolidated sales doubled from that of a year ago, totalling US$821 million for the first fiscal quarter, or 16 percent of the Company’s worldwide sales.

Lenovo's purchase of IBM's personal computer business in 2005 also seemed to have a hand with the profits with the company claiming: "During the [quarter], the worldwide PC market continued to extend the strong growth momentum started in the second half of last fiscal year to grow at 20.9 percent year-on-year."

Lenovo’s Laptop computers generated 60.5 percent of the Company’s total sales revenue worldwide in the first fiscal quarter. Consolidated sales for Lenovo’s laptop PC business worldwide in the first quarter increased 50 percent year-over-year, helping Lenovo move from sixth to fourth place among the world’s leading laptop vendors.

The company’s laptop shipments worldwide in the quarter were up 58 percent, compared to an overall industry increase of 28 percent year over year.