China's Lenovo posts 64% slump in quarterly profit, but tops estimates

HONG KONG (Reuters) - China's Lenovo Group , the world's biggest maker of personal computers (PCs), posted a better-than-expected quarterly profit on Wednesday and said it could benefit from the 'new normal' of working from home. 'This trend is not only leading to a growth in PCs and smart devices, but also in the supporting data centres and infrastructure to power faster networks and digital consumption,' said Lenovo in a statement. Lenovo reported a 64% slump in net profit for its fourth quarter, ended March 31, to $43 million due to disruption caused by the coronavirus crisis, beating an average estimate of $7.49 million by seven analysts, according to Refinitiv data.

Reuters May 20, 2020 07:05:39 IST
China's Lenovo posts 64% slump in quarterly profit, but tops estimates

Chinas Lenovo posts 64 slump in quarterly profit but tops estimates

HONG KONG (Reuters) - China's Lenovo Group <0992.HK>, the world's biggest maker of personal computers (PCs), posted a better-than-expected quarterly profit on Wednesday and said it could benefit from the "new normal" of working from home.

"This trend is not only leading to a growth in PCs and smart devices, but also in the supporting data centres and infrastructure to power faster networks and digital consumption," said Lenovo in a statement.

Lenovo reported a 64% slump in net profit for its fourth quarter, ended March 31, to $43 million due to disruption caused by the coronavirus crisis, beating an average estimate of $7.49 million by seven analysts, according to Refinitiv data. The Chinese company had reported a net profit of $118 million in the year-ago period.

Lenovo's fourth-quarter revenue dropped 9.7% to $10.6 billion from a year earlier.

Worldwide shipments of personal computers declined 12.3% in the first quarter of 2020, the sharpest fall since 2013 due to the pandemic, research firm Gartner said last month.

Lenovo took a 24.4% market share in PCs during the quarter, ahead of rivals HP Inc and Dell Inc , it said.

(Reporting by Pei Li; Editing by Muralikumar Anantharaman and Sherry Jacob-Phillips)

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