Lenovo builds up profits in Q3
Lets go of mobile division
Computer maker Lenovo is getting out of the mobile business after seeing handset sales slide in the third quarter.
The vendor increased overall sales 15 per cent to $4.6bn in the third quarter ended 31 December 2007. Earnings before Interest Tax, Depreciation and Amortization, excluding restructuring costs, grew 91 per cent to $244m. Quarterly pre-tax income jumped 190 per cent to $192m.
Notebooks made up 56 per cent of total sales, but desktop sales grew 12 per cent in the three months to 40 per cent of total sales.
However, sales of mobile handsets fell 31 per cent in the quarter to $108m. Lenovo is selling its handset business to a private equity group led by Hony Capital, part of Legend Holdings, for $100m.
Lenovo Greater China made sales of $1.8bn up 16 per cent - or 40 per cent of the company's total sales.
The Americas brought in $1.2bn, growth of 15 per cent on the same period last year. Europe, the Middle East and Africa saw sales jump 24 per cent to $1.1bn.
Asia-Pacific grew PC shipments 20 per cent in the period. Total sales were $535m.®