Lenovo annual profit up 1 percent, misses forecasts, on IBM, Motorola deals
BEIJING – Lenovo Group Ltd (0992.HK), the world’s leading PC maker, said on Thursday its annual net profit rose one percent to $829 million, below analysts expectations, after completing two major acquisitions.
Analysts had forecast a net profit of $857 million.
Revenue during the 2014/15 financial year to March 31 also rose 20 percent to $46.3 billion. In the fourth-quarter, revenue rose 21 percent to $11.3 billion, slightly lower than expectations of $11.98 billion, according to Thomson Reuters SmartEstimate.
In October, the Beijing-based firm closed its $2.1 billion acquisition of IBM’s low-end server unit and also its $2.9 billion purchase of Motorola. It has also been expanding into enterprise computing and consumer smartphones in anticipation of a long-term decline in PC sales. – Reuters