HONG KONG - Thursday, February 9th 2012 [ME NewsWire]
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).
(BUSINESS WIRE)-- 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.
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
Lenovo China’smarket share rose 3.1 percentage points during the
third fiscal quarter, to an all-time high market share for Lenovo in
China of 35.3 percent. In the largest PC market in the world, Lenovo
widened the share gap between itself and the Company’s main competitors,
and continued to outperform the China market, particularly in emerging
cities and amongst rural customers. Lenovo posted US$3.5 billion in
consolidated sales in China in the third quarter, an increase of 30
percent year-over-year, and accounting for 42 percent of the Company’s
worldwide sales. Lenovo’s PC shipments in China increased 28 percent
year-over-year, almost double the overall industry increase of PC
shipments in China of 17 percent.
InEmerging 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.
ABOUT LENOVO
Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a $US21 billion personal
technology company – and the second largest PC company in the world,
serving customers in more than 160 countries. Dedicated to building
exceptionally engineered PCs and mobile internet devices, Lenovo’s
business is built on product innovation, a highly efficient global
supply chain and strong strategic execution. Formed by Lenovo Group’s
acquisition of the former IBM Personal Computing Division, the Company
develops, manufactures and markets reliable, high-quality, secure and
easy-to-use technology products and services. Its product lines include
legendary Think-branded commercial PCs and Idea-branded consumer PCs, as
well as servers, workstations, and a family of mobile internet devices,
including tablets and smart phones. Lenovo has major research centers
in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh,
North Carolina. For more information, see www.lenovo.com.
* See IDC 2011Q4 press release
** includes Africa, Asia Pacific, Central/Eastern Europe, Hong Kong,
India, Korea, Latin America, Mexico, Middle East, Pakistan, Russia,
Taiwan, Turkey
***includes Australia/New Zealand, Israel, Japan, North America, Western Europe and global accounts
LENOVO GROUP
FINANCIAL SUMMARY
For the third quarter ended December 31, 2011
(in US$ millions, except per share data)
Q3 11/12
Q3 10/11
Y/Y CHG
Sales
8,372
5,808
44
%
Gross Profit
954
648
47
%
Gross Profit Margin
11.4
%
11.2
%
0.2pt
Operating Expenses
(761
)
(524
)
45
%
Expenses-to-Revenue Ratio
9.1
%
9.0
%
0.1pt
Operating Profit
193
124
55
%
Other Non-Operating Expenses
(1
)
(3
)
(71
%)
Pre-tax Income
192
121
59
%
Taxation
(38
)
(21
)
80
%
Profit for the period
154
100
55
%
Non-controlling interests
(1
)
0
n/a
Profit attributable to Equity Holders
153
100
54
%
EPS (US cents)
Basic
1.50
1.03
0.47
Diluted
1.46
0.98
0.48
Contacts
Lenovo Group
Hong Kong
Angela Lee, 85225164810
angelalee@lenovo.com
Beijing
Estelle Qian, 861058860627
qianyn@lenovo.com
U.S.
Ray Gorman, 9192576325
rgorman@lenovo.com
Thanks, useful info.
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