Press release
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Quarterly sales of US$4.2 billion, up 10%
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Quarterly EBITDA of US$181 million
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Pre-tax income of US$137 million
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Profit attributable to shareholders of US$110 million, up 65%
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Basic EPS of 1.25 US cents, or 9.75 HK cents
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Net cash reserves of US$1.8 billion (as of June 30, 2008)
Above figures reflect continuing operations only (excludes mobile handset business)
HONG KONG, August 7, 2008– Lenovo Group today reported results for its first fiscal quarter ended June 30, 2008. During the first quarter, Lenovo’s worldwide PC shipments grew 14.6 percent, roughly in line with the industry average growth.
As previously announced, Lenovo completed the sale of its mobile handset business in March 2008 in order to better focus on its core PC business.
Consolidated sales for the quarter from continuing operations (excluding the mobile handset business) rose 10 percent year over year to US$4.2 billion. The Group’s gross profit margin for the first quarter reached 14.1 percent. Lenovo reported pre-tax income of US$137 million from continuing operations. Profit attributable to shareholders for the quarter grew 65 percent to US$110 million.
Basic earnings per share totaled 1.25 US cents, or 9.75 HK cents. Net cash reserves as of June 30, 2008, totaled US$1.8 billion.
“Despite a softening global economy, we delivered solid gains in worldwide sales, PC shipments and profits, achieving our seventh consecutive quarter of profitable growth with positive operating results in our international business,” said Chairman Yang Yuanqing. “Our improved E/R ratio also reflected progress in our operational efficiency. Looking forward, we will invest even greater effort and resources into the development of emerging markets and our consumer business, and ensure an effective execution of our strategies. As a Worldwide Partner of the International Olympic Committee and the exclusive technology equipment provider of the Beijing 2008 Summer Olympic Games, Lenovo is ready and will do our best to ensure the smooth operations of the comprehensive IT system we are providing to support the Games. We will fully leverage this unique opportunity to showcase the Lenovo brand on the world stage.”
“In forging Lenovo’s worldsourcing business model, we set out to bridge East and West by creating a unique culture built upon a solid foundation of execution excellence,” said President and CEO William J. Amelio. “We are starting to reap major dividends from this strategy in terms of improved serviceability, margin and supply chain efficiency. As a result, Lenovo is growing across geographies and product lines, continuing to bolster its already strong position in both developed markets and, through our transaction-based sales model expertise, the fast-growing emerging markets, which today account for more than half of total sales.”
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