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Thursday, February 4, 2016

Lenovo closes a solid fiscal third quarter with net income growth

Lenovo announced financial results for its fiscal third quarter ended December 31, 2015 and characterized by a return to profitability, despite the PC market dynamics which, as noted, is experiencing a deep crisis. A quarter that ends well for Lenovo thanks to a winning combination of results: on the one side expansion of the product catalog that has managed to reach the attention of the public effectively, and secondly the operational efficiency and conclusion of the corporate restructuring plan.

In the third quarter of fiscal 2015, Lenovo has generated a turnover of 12.9 billion dollars, down year on year (-8% or -2% if calculated in constant currency), but the net profit (excluding restructuring expenses caused caused losses in Q2) of $ 300 million increased 19% over the same quarter of 2014, a result that also appears higher than analysts' estimates.

During fiscal year 2015 third quarter Lenovo has consolidated its position as the PC market leader - market share amounted to 21.6% according to IDC statistics - and, to continue to grow in the segment, as precise, Yang Yuanqing, chairman and CEO of ' company, will focus on the consolidation trend, the replacement of professional PCs and investments to structure a portfolio divided into the most innovative products.

As for the mobile industry, Lenovo has achieved a draw in the quarter in question, a result that comes after 4-6 quarters after completion of the transaction related to Motorola. The number one of the cornerstones of Lenovo outlines prepared strategy for the mobile industry in the coming months: on the one hand the aim of continuing to establish itself in emerging markets by exploiting economies of scale and efficiency, on the other hand to propose in mature markets innovative products and brands prestige. China continues to be one of the most important markets for Lenovo, which aims to expand the product portfolio allocated to this area. Innovation and strategic partnerships, ultimately, are the recipe prepared by Lenovo to grow the profits of the Enterprise segment.

In the quarter being surveyed, Lenovo has also completed a restructuring plan which, according to forecasts, should allow for a savings of $ 650 million in the second half of the year and 1.35 billion dollars His annual basis.

By narrowing the scope of observation to the results for the third fiscal quarter Lenovo's EMEA (Europe, Middle East and Africa), it highlights the revenues of $ 3.5 billion (down 15% yoy), which is the 27% of the worldwide turnover of the company. Despite the decline in sales, given - as precise Lenovo - by the impact of exchange rates and the dynamics of the PC market - the producer has kept the second position in the PC market in the EMEA region with a market share of 19.4%, while , as regards the mobile business, it highlights the marked growth of deliveries (+ 48%) on an annual basis with 4.7 million units.

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