Lenovo profits flat after big buys

LENOVOThe world’s biggest PC maker Lenovo saw its annual net profit rise one percent to $829 million.

This was slightly below what the cocaine nose jobs of Wall Street expected but it had completed two major acquisitions during the year.

The Beijing-based firm closed in October its $2.1 billion acquisition of IBM’s low-end server unit and also its $2.9 billion purchase of Motorola, and these purchases weighed on its profit for the year that ended March 31.

Analysts had forecast a net profit of $857 million.

Revenue during the 2014/15 financial year rose 20 percent to $46.3 billion as Lenovo expanded its share of the shrinking PC market to one-fifth. In the fourth-quarter alone, revenue rose 21 percent to $11.3 billion.

Lenovo claimed PC sales rose across all geographic regions but targeted Europe in particular as an area of potential growth, which is odd really because everyone else has written off the EU market.

PC sales to businesses rose three percent year-on-year despite a three percent drop in the broader market, it added.

Lenovo has been expanding into enterprise computing and smartphones to offset the decline in PC sales globally.

The company said both the IBM unit and Motorola were “on track to deliver their targets”, without giving details. Chief executive Yang Yuanqing has previously pledged to return the business units to profit by mid-2016.