· Record quarterly sales of US$8.4 billion
· Record pre-tax income of US$192 million
· Profit attributable to equity holders of US$153 million
· Highest-ever worldwide market share of 14.0 percent
· Highest-ever market share in China of 35.3 percent
· Basic EPS of 1.50 US cents, or 11.67 HK cents
· Net cash reserves of US$3.9 billion (as of December 31, 2011).
HONG KONG, February 9, 2012
– Lenovo Group today reported results for its third fiscal quarter
ended December 31, 2011, highlighted by record highs in quarterly sales,
pre-tax income and market share, and the 11th quarter in a
row that Lenovo has grown faster than the industry as a whole. For the
ninth quarter in a row, the Company grew faster than any of the top four
PC manufacturers, a result of Lenovo’s continued focus on balanced
growth across all geographies, customer segments and product lines.
During the third quarter, Lenovo recorded its highest-ever worldwide
market share of 14.0* percent, and its highest-ever market share in
China of 35.3 percent, an increase of 3.7 and 3.1 share points
year-over-year respectively.
During the third fiscal quarter Lenovo’s pre-tax income increased 59 percent year-over-year, to a record high of US$192 million.
The
Company’s gross profit for the third quarter grew 47 percent
year-over-year, to US$954 million, with gross margin at 11.4 percent.
Operating profit for the third quarter was US$193 million, while profit
attributable to equity holders grew 54 percent year-over-year to US$153
million.
Based upon the Company’s strong
execution of its “Protect and Attack” strategy, Lenovo achieved record
sales of US$8.4 billion during the third fiscal quarter, an increase of
44 percent year-over-year. While the worldwide PC industry as a whole
struggled to remain flat year-over-year, Lenovo’s PC shipments increased
an impressive 37 percent, outpacing the industry growth/decline in
China, Emerging Markets and Mature Markets alike.
Basic
earnings per share for the third fiscal quarter was 1.50 US cents, or
11.67 HK cents. Net cash reserves as of December 31, 2011, totaled
US$3.9 billion. PC businesses in
Last month
Lenovo participated at the Consumer Electronics Show (CES) in Las Vegas,
ignited by a press conference where the Company introduced for the
first time to a worldwide audience such innovative new products as the
IdeaPad Yoga, a tablet/ultrabook hybrid; the IdeaCentre A720, the
world’s slimmest 27-inch, all-in-one PC; the K91 smart TV, and
the Company’s vision for the Personal Cloud. Lenovo’s product showcase
was busy day and night with media, business partners and customers, and
the Company took home a total of 23 industry awards.
"Despite
the worldwide hard drive shortage in the past quarter, Lenovo continued
to achieve strong growth with record results in market share and
revenue, as well as record high in PTI (pre-tax income) of US$192
million. For the first time, Lenovo became the number one vendor
globally in commercial PCs and in consumer desktop," said Yang Yuanqing,
Lenovo Chairman and CEO. "We saw strong progress in our Mobile Internet
business. During the quarter, Lenovo sold more than 6.5 million phones,
and almost half were smartphones. Lenovo's smartphone market share in
China reached double-digit market share in December. We also see strong
momentum in our tablet business. All these successes demonstrate that
Lenovo has built a strong foundation for the next steps beyond
traditional PCs."
GEOGRAPHIC OVERVIEW
· In Emerging Markets**
Lenovo’s consolidated sales totaled US$1.3 billion for the third fiscal
quarter, an increase of 13 percent year-over-year, and 15 percent of
the Company’s worldwide sales. Lenovo’s PC shipments across the region
increased 23 percent year-over-year in the third quarter, more than five
times the overall industry increase in the region of just four percent.
Lenovo grew market share by 1.2 percentage points year-over-year across
the region to 7.8 percent. Lenovo’s business in India continued to be
strong, with PC shipments up 28 percent during the third quarter, and
record market share of 13.7 percent. The Company’s growth in Latin
America continued to impress, with PC shipments across the region
increasing 54 percent. In Russia, Lenovo increased PC shipments 23
percent year-over-year.
· Mature Markets***
accounted for US$3.6 billion in consolidated sales, an increase of 81
percent year-over-year, attributed primarily to the hard-earned success
in Japan and Germany of the Company’s joint venture with NEC and
acquisition of Medion respectively. As a result, Mature Markets
accounted for 43 percent of the Company’s worldwide sales during the
third fiscal quarter. Increased demand in commercial PC opportunities
across Western Europe and North America resulted in an eye-opening
year-over-year 67 percent increase in Lenovo’s PC shipments in mature
markets during the third quarter, compared to an overall industry
decline in mature markets of 8 percent. Significantly, Lenovo gained 4.2
market share points in the third quarter and posted an all-time high
9.4 percent market share in the region, and fast closing in on
double-digits. In North America, Lenovo PC shipments increased 40
percent, in a market that was down seven percent.
PRODUCT OVERVIEW
· Consolidated sales for Lenovo’s laptop PC
business worldwide in the third fiscal quarter totaled US$4.5 billion,
an increase of 30 percent year-over-year. Lenovo’s laptop
computers continued to be the largest contributor to the Company’s sales
worldwide, generating 53 percent of Lenovo’s total sales revenue. The
Company’s laptop shipments worldwide in the third quarter were up 41
percent year-over-year, compared to an industry increase of just three
percent.
· Lenovo’s desktop
shipments for the third fiscal quarter increased 32 percent
year-over-year, compared to an industry decline of three percent. Lenovo
is now the number one provider of consumer desktop PCs in the world,
and the third largest provider of commercial desktop PCs. Consolidated
sales of Lenovo desktop PCs worldwide in the third quarter totaled
US$2.8 billion, an increase of 39 percent year-over-year, and 33
percent of Lenovo’s total sales revenue.
· Lenovo MIDH (Mobile
Internet/Digital Home)recorded US$565 million in consolidated sales
during the third fiscal quarter. Led by the successful launch of the A60
and P70 smartphones, Lenovo’s smartphone shipments in China increased
20 times year-over-year for the quarter. Lenovo’s feature phone
shipments increased 26.2 percent, compared to an overall market decrease
of 12 percent. Tablet shipments continued to show good momentum with
unit shipment results more than double quarter-to-quarter. Lenovo is the
number two tablet vendor in China according to the latest industry
estimate. During the last quarter, Lenovo made several announcements
rounding out the Company’s MIDH product portfolio including the S2
smartphone, IdeaTab S2 tablet, the K91 smart TV and its vision for the
Personal Cloud.
* See IDC 2011Q4 press release
**
includes Africa, Asia Pacific, Central/Eastern Europe, Hong Kong,
India, Korea, Latin America, Mexico, Middle East, Pakistan, Russia,
Taiwan, Turkey
***includes Australia/New Zealand, Israel, Japan, North America, Western Europe and global accounts
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