Lower costs lift Lenovo earnings

Trade

Quarterly earnings at Lenovo – ranked by Gartner as the world’s fourth PC seller after HP, Dell, and Acer – have jumped 25%.

Key factors in the rise were lower component costs and a strengthening of the Chinese currency, the yuan.

Net profit, at $99.6 million (about €73m) in the three months to December’s end, was up almost $20m from $79.5m in Q4 2010 and comfortably ahead of the $86m that most analysts had predicted.

However, continuing economic uncertainty in Europe and the US has prompted Lenovo to warn that sales growth can now be expected to ease off.

Another factor in Lenovo’s performance was rapidly growing sales in newer markets less saturated with PCs.

These areas saw Lenovo’s sales rise 34%, compared to 22% in Europe and the US while sales in China were up 18% in Q4 10.

Read More: Trade News