World’s largest PC maker announces record profits

World’s largest PC maker announces record profits

World’s largest PC maker announces record profits

Written by Bella Dalima

13 Feb, 2014 | 3:49 pm

Lenovo, the world’s largest PC maker, has posted record third-quarter profit on higher sales of laptops and mobile devices in emerging markets.

The Chinese firm said earnings rose 30% to $265m (£159m) from a year earlier, beating analysts’ estimates of $247m. Revenues jumped by 15% to a record $10.8bn, led by sales in China.

However, the firm warns its future finances will be negatively impacted by its recent purchase of IBM’s low-end server business and Motorola Mobility. Lenovo paid more than $5bn – or nearly half of the company’s market value – to buy both businesses in January.

Investors have questioned the acquisitions, given both handset-maker Motorola Mobility and IBM’s server business are currently loss-making.

On a conference call, Lenovo said it would take up to five quarters – or more than a year – to turn around the Motorola business, which it bought from Google for $2.9bn.

 

 

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