Chinese PC maker Lenovo continued to advance toward its goal of becoming the world’s No. 1 PC maker with quarterly sales that defied a sluggish market and exceeded analysts’ expectations.
The world’s second-largest PC company was the fastest-growing major PC maker for the 10th consecutive quarter because of strong sales in markets around the world. Its sales also were bolstered by expansion in Germany and Japan via an acquisition and the establishment of a joint venture.
Chief Financial Officer Wong Wai Ming said during a conference call that the company remains in the hunt for acquisitions “that will enable us to accelerate our growth in high-growth markets.”
Although based in China, Lenovo operates an executive headquarters in Morrisville that employs about 1,800 workers. Lenovo acquired IBM’s PC business in 2005.
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Lenovo reported last week that sales for the fiscal fourth quarter that ended March 31 totaled $7.5 billion, up 54 percent. Profit totaled $67 million, up 59 percent.
“Profit is growing in line with top-line growth, reflecting that Lenovo is able to maintain its margin despite increased investment in mobile devices,” CIMB analyst Jonathan Ng told Bloomberg News in an email.
For the entire fiscal year, Lenovo’s revenue rose 37 percent to $29.57 billion.
Profit totaled $473 million, an increase of 73 percent.
“We are confident that next year will be even better,” said CEO Yang Yuanqing.
Lenovo said its fourth-quarter sales in North America rose 26 percent.
Market research firm IDC previously reported that Lenovo’s market share surged to 13.4 percent in the first quarter, up from 9.6 percent a year ago.
Market leader Hewlett-Packard posted an 18 percent market share.
Lenovo also reported strong gains from its foray into the smartphone market in China. Today its share of that market is approaching 10 percent.