BEIJING – Lenovo Group Ltd., the world’s biggest PC maker by sales, says its profit margin will rise in the future in spite of its current low positive trend.
The firm’s Chief Executive, Yang Yuanqing, said on Thursday in Beijing the company’s acquisition of IBM unit and Motorola were “on track to deliver their targets”, without giving details.
Yang had previously pledged to return the business units to profit by mid-2016.
The company’s annual net profit rose one per cent to $829 million, slightly below analysts’ expectation.
Analysts had forecast a net profit of $857 million after completing the acquisitions of IBM’s low-end server unit and Motorola in October, 2014.
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The Beijing-based firm had acquired IBM’s low-end server unit for $2.1 billion and Motorola for $2.9 billion.
These purchases weighed on its profit for the year that ended March 31.
Revenue during the 2014/15 financial year rose 20 per cent 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 per cent to $11.3 billion.
Lenovo said PC sales rose across all geographic regions but targeted Europe in particular as an area of potential growth.
PC sales to businesses rose 3 per cent year-on-year in spite of a three per cent drop in the broader market, it added.
Lenovo has been expanding into enterprise computing and smartphones to offset the decline in PC sales globally. (Reuters/NAN)
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