0
IT

Lenovo quarterly profits up as Motorola reaches breakeven

Thursday 8 November 2018 | 08:57 CET | News

Lenovo reported a strong improvement in results for its fiscal second quarter, supported by a return to breakeven at Motorola and continued growth in the PC business. Group revenue reached USD 13.4 billion, up 14 percent year-over-year, and operating profit more than tripled, to USD 290 million from USD 88 million a year ago. The net profit increased 21 percent to USD 168 million, and Lenovo proposed a stable interim dividend of HKD 0.06 per share.

The main milestone for the group was a breakeven operating result for Motorola worldwide and the entire mobile phone business outside China. This was supported by a 65 percent year-on-year increase in shipments in North America in the first half, driven by mainstream models such as the Moto G6 and E5 and carrier expansion. Lenovo also continued to grow in Latin America, where Motorola remains the number-two brand. 

Total mobile phone shipments were still down 20 percent year-on-year in the fiscal first half, as Lenovo continued to struggle in China and narrowed its focus in other markets. Revenue at the mobile business fell 15 percent year-on-year in the first half to USD 3.25 billion, while the pretax loss narrowed to USD 146 million from USD 337 million a year ago. 

At the PC business, revenue for the six months was up 18 percent to USD 18.87 billion, and pretax profit jumped 42 percent to USD 940 million, thanks to an improved product mix with a higher share of shipments to the commercial segment. Lenovo said it was the fastest-growing PC group in the quarter and also regained the number-one position in shipments, according to IDC figures.



Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: IT / Mobile & Wireless
Companies: Lenovo / Motorola
Countries: World
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Related

Lenovo launches charitable and philanthropic arm

Published 22 Oct 2018 14:05 CET | China
Lenovo has formally launched the Lenovo Foundation, a charitable and philanthropic arm of the company. The Foundation is expected ...

Lenovo teams up with Amazon to create voice-activated tablet products for homes

Published 21 Sep 2018 13:00 CET | World
Lenovo and Amazon teamed up to create Lenovo Smart Tab, a brand new line of voice-activated tablet products for the home that ...

Veeam and Lenovo partner for intelligent data management

Published 17 Sep 2018 14:44 CET | World
Veeam Software has formed a partnership to enable customers to purchase Veeam intelligent data management products with Lenovo ...

Lenovo introduces ThinkShield for enterprise security

Published 13 Sep 2018 15:26 CET | World
Lenovo announced ThinkShield, its new enterprise security platform, at its Transform 2.0 event. ThinkShield features a suite of ...

Lenovo unveils Yoga C630 'Windows on Snapdragon' laptop

Published 03 Sep 2018 14:28 CET | World
Lenovo has taken advantage of its appearance at IFA 2018 to unveil the Yoga C630 WOS (Windows on Snapdragon) 2-in-1 Windows 10 ...

Lenovo returns to profit as quarterly sales grow 19%

Published 16 Aug 2018 08:50 CET | World
Lenovo reported a return to profit in its fiscal first quarter to June, driven by revenue growth and cost savings from the merger ...

Lenovo intros ThinkAgile private cloud computing system with Cloudistics

Published 18 Jul 2018 10:06 CET | World
Lenovo Data Center Group announced the launch together with Cloudistics of the ThinkAgile CP Series composable cloud platform, a ...





Calendar   /   Industry Events

29 Oct ITU Plenipotentiary Conference
12 Nov Gilat Satellite Networks Q3 2018
12 Nov Play Q3 2018
12 Nov Otello Q3 2018
12 Nov YY Q3 2018
12 Nov Aviat Networks fiscal Q1
12 Nov DC5G
13 Nov Telkom fiscal H1
13 Nov Vodafone Group fiscal Q2
13 Nov 1&1 Drillisch Q3 2018
13 Nov Asus Q3 2018
13 Nov United Internet Q3 2018
13 Nov Iliad Q3 2018
13 Nov Evolving Systems Q3 2018
13 Nov Extreme Networks financial conference
13 Nov AfricaCom
14 Nov Digi Communications Q3 2018
14 Nov Multimedia Polska Q3 2018
14 Nov TDC Q3 2018
14 Nov Blonder Tongue Q3 2018
14 Nov Cisco fiscal Q1
14 Nov ProSiebenSat.1 Capital markets day
14 Nov HbbTV Symposium
15 Nov Vivendi Q3 2018
15 Nov Bouygues Telecom Q3 2018
15 Nov Nvidia fiscal Q3
16 Nov Cognizant investor day
::: More Calendar Items