Dubai PR Network, Online Press Release from Dubai and Middle East
 
Money, Business & Investments(Banking & Investments)
Filter PR by
  
Lenovo Kick-starts Fy19/20 With Industry Leading Growth, Doubling Year-on-year Income Through Strong Customer Focus and Acceleration of Intelligent Transformation Strategy
 
Lenovo Kick-starts Fy19/20 With Industry Leading Growth,  Doubling Year-on-year Income Through Strong Customer Focus and  Acceleration of Intelligent Transformation Strategy
• Group revenue grew year-on-year for eight consecutive quarters, reaching US$12.5B in Q1 FY19/20
• PTI more than doubled to US$240M year-on-year, up US$127M
• Net income was US$162M, up US$85M year-on-year, also more than doubling
• One in every four PCs built worldwide is a Lenovo PC, thanks to record market share of 24.9%
 
Dubai, United Arab Emirates -  19, August 2019:   Lenovo Group (HKSE: 992) (ADR: LNVGY) announced that its revenue in the first quarter of 2019 reached US$12.5 billion, resulting in the eighth consecutive quarter of growth. Pre-tax income more than doubled year-on-year, growing by US$127 million to reach US$240 million. Net income also more than doubled, up US$85 million to US$162 million. 
 
Basic earnings per share for the first quarter were 1.37 US cents or 10.74 HK cents. 
 
“This fiscal year kicked off to an excellent start. Once again, this quarter’s strong results provided solid evidence that Lenovo’s Intelligent Transformation is enabling the company to drive sustainable, profitable growth in today’s dynamic and changing world. Our persistent execution and operational efficiency allows us to bring our vision to life and deliver smarter technology for all,” said Yang Yuanqing, Lenovo Chairman and CEO.
 
Global trade environment
 
The first quarter results signal that Lenovo continues to thrive – outperforming the market and leading the global tech sector in spite of industry-wide geopolitical and trade uncertainties.  Lenovo is positioned better than most given a globally balanced revenue mix, footprint across 180 markets, and more flexible majority-owned manufacturing base.  To date there has been negligible material impact on the business. Looking ahead, the global scale and breadth of the business ensures Lenovo is well positioned to manage complex and dynamic market conditions, while delivering sustainable long-term results. 
 
Business Group Overview
 
The strong results are led by the Intelligent Devices Group (IDG). The PC and Smart Devices Group (PCSD), one of its two business units, continued double-digit (12%) revenue growth while achieving its highest-ever profit in a fiscal first quarter, and further improving industry leading profitability. Pre-tax income was US$524 million, up US$98 million.  Americas and Asia Pacific achieved 20% and 40% year-on-year revenue growth respectively and all four geographies (Americas, Asia Pacific, China, EMEA) each delivered over US$2 billion in revenue, demonstrating the geographical balance and sustainability of this business.
In PCs, volume outgrew the market, which as a whole is experiencing a recovery, by over 13 points, and the group hit an all-time record PC market share of 24.9%. 
 
This means one in every four PCs built in the world is a Lenovo PC – cementing Lenovo’s position as the worldwide number one in PCs. 
These strong results are driven by innovation, a customer-centric product portfolio and continuing focus on operational excellence. This strategy enables the company to outgrow the market significantly across high-growth and premium categories including Workstation, Thin and Light, Visuals, Gaming PCs and Chromebook.
 
Looking forward, the PC and Smart Device group will continue to drive premium-to-market growth and industry-leading profitability by focusing on premium segments as well as innovating in Smart IoT, commercial Smart IoT and developing new devices for homes and offices.
 
IDG’s second business unit, the Mobile Business Group (MBG), delivered another profitable quarter and improved pre-tax income by US$100 million for the 4th consecutive quarter. In the North America market, volume outgrew the market by more than 37 points and pre-tax income margin improved by over 14 points year-on-year. In the company’s Latin America stronghold, volume has grown with or above the market for 11 quarters. 
 
Going forward, the mobile business will continue to maintain profitability and seek opportunities to drive profitable growth in new markets with new innovative products. 
 
The Data Center Group (DCG) continued to improve profitability year-on-year for the eighth consecutive quarter. Storage revenue grew more than 80% year-on-year and Software Defined Infrastructure (SDI) continued to grow at a double-digit rate year-on-year.
 
Overall revenue declined due to a small number of large cloud customers reducing their purchasing after rapid infrastructure growth over the past year and a lower average unit revenue due to declining component prices. In High Performance Computing the company extended the Number 1 position in the Top 500 Supercomputer list to 173 systems across 20 markets – continuing to support ground-breaking scientific research and applications around the world.  
 
The group will continue to expand as a full stack Data Center player, driving SDI, storage, networking, HPC, AI, IoT, service and solution led sales while strengthening in-house design and manufacturing capability for Hyperscale. In addition, the business will further improve routes-to-market and operational excellence to achieve premium to market growth, while improving profitability.


Posted by : Dubai PR Network Editorial Team
Viewed 5148 times
PR Category : Banking & Investments
Posted on : Monday, August 19, 2019  11:12:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : 3 Back-to-School Promotion Campaigns from Union Coop
Next Story : Harris Pye UAE strengthens its footprint in Egypt
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Move Aside C-beauty, K-beauty and J-beauty - There's a New Trend in Town and It Hails Fro... [8296-Views]
Autumn/Winter 19: Step out in the latest styles with City Centre Deira and City Centre Mir... [7131-Views]
Think LUNETTE for an earth-friendly period [6680-Views]
Restoration by Parmigiani Fleurier -The Yusupov Egg [5313-Views]
ACE launches its new and inspirational Outdoor collection [5240-Views]
Chain Reaction [5203-Views]
Dress for Diwali With the Rack by Kachins [5094-Views]
Sandro Launches Evening Capsule Collection [4880-Views]
‘A Gift of Gold' offers at Malabar Gold & Diamonds [4831-Views]
Celebrate guilt-free shopping to your fullest! [4752-Views]
VAIO returns to Middle Eastern in partnership with Nexstgo [4728-Views]
Eighth World Championship title in all categories for Tissot Ambassador Marc Marquez [4691-Views]
His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum Challenges the City to Be ‘I... [4551-Views]
Handbags and Gladrags [4538-Views]
Unifonic empowers business to capitalize on instant messaging apps to engage with customer... [4386-Views]
A new model for the ladies enriches the Corum AC-One collection with luscious femininity [4209-Views]
New Strategic Partnership with Hewlett Packard Enterprise to help accelerate Abu Dhabi Dig... [4178-Views]
Saudi Arabia's Ministry of Energy highlights enhanced cybersecurity credentials at GITEX T... [4099-Views]
The S Hotel Al Barsha reveals five new food and beverage offerings [4026-Views]
Hazzaa AlMansoori Undergoes Medical Experiments at Stars City as part of His Scientific Mi... [4020-Views]
Saif bin Zayed unveils first floating Smart Police Station [4014-Views]
Dubai Land Department welcomes Saudi Minister of Housing [4008-Views]
Save the Children Jordan launches TREE program “Transforming Refugee Education towards Exc... [3941-Views]
During a press conference to announce the completion of preparations of Summit that will b... [3928-Views]
Sofas for Lavish Lounging from 2XL Furniture & Home Decor [3904-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories