Lenovo Group
Ltd (0992.HK),
the world's largest personal computer (PC) maker, on Thursday posted a 67
percent slide in third-quarter net profit, lagging analyst estimates,
as supply constraints and a weak macroeconomic environment weighed.
as supply constraints and a weak macroeconomic environment weighed.
Profit fell to
$98 million over the three months through December, from $300 million in the
same period a year earlier. That compared with the $159.53 million average of
14 analyst estimates in a Thomson Reuters poll.
Revenue fell 6
percent to $12.2 billion.
Component
supply constraints across the industries in which Lenovo operates impacted
performance, in addition to a challenging macro environment and global markets,
the company said in a filing.
The results
come as PC makers continue to battle against tablets and smartphones which for
many consumers have become the primary devices for internet access and casual
computing. Global PC shipments fell for a fifth consecutive year in 2016, by
6.2 percent, showed data from researcher Gartner.
Nevertheless,
Lenovo saw its core PC business book 2 percent revenue growth to $8.6 billion,
reversing a seven-quarter downward trend. Shipments rose 2 percent to 15.7 million
units, helped by a 5 percent rise in commercial PCs.
Shipments in
its mobile phone unit fell 26 percent, though that represented improvement
since the first quarter.
Lenovo's share
price has risen over 10 percent this year, in line with gains in the Hang Seng
index .HSI.
The stock ended morning trade down 2.1 percent, versus the benchmark's 0.4
percent rise.
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