Lenovo Posts Income Gains on Strong Laptop Sales

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PC maker Lenovo Group posted double-digit percentage increases in sales and net income for its first fiscal quarter, boosted by laptop sales, the company announced Thursday.

Lenovo, based in Hong Kong, reported a net income of US$110 million for the quarter that ended June 30, up more than 65 percent from the $67 million net income in its first fiscal quarter of 2007. Sales for the quarter were up more than 10 percent from $3.8 billion in the first quarter of 2007 to $4.2 billion in the latest quarter, the company said.

The company's laptop sales totaled $2.4 billion for the quarter, up 17 percent from a year ago. Lenovo's laptop shipments increased 33 percent from last year. The company's desktop sales increased by just 3 percent. Overall, PC shipments increased by nearly 15 percent, about average growth for the PC industry, the company said.

Lenovo's Greater China division posted $1.7 billion in consolidated sales, up 22 percent from the year before, and its Americas division posted $1.1 billion in sales, the same amount as in the first quarter of 2007. The weak U.S. economy contributed to a lack of growth in sales there, the company said. Sales in Lenovo's Europe, Middle East and Africa region grew 26 percent from a year earlier, and sales in Asia Pacific, not including China, grew 11 percent.

Earnings per share for the quarter were $1.25.

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