Lenovo's (LNVGY) worldwide PC shipments grew 14.6% over the last quarter as it reported results for its first fiscal quarter ended June 30, 2008.
Consolidated sales for the quarter from continuing operations — excluding the mobile handset business, which it sold in March 2008 — rose 10% year over year to USD4.2 billion. The Group's gross profit margin for the first quarter reached 14.1%. Lenovo reported pre-tax income of USD137 million from continuing operations. Profit attributable to shareholders for the quarter grew 65% to USD110 million.
Lenovo Greater China posted USD1.7 billion in consolidated sales in the first fiscal quarter, up 22%, with growth of 17% in PC shipments. Despite the impacts from the Sichuan earthquake and floods, Lenovo continues to lead the China market with a share of 27.9% on the strength of sales across product lines. The Greater China business accounted for 41% of total sales in the quarter.
Shipments for the Asia Pacific business, excluding Greater China, increased 11% in the first fiscal quarter. Consolidated sales in Asia Pacific totaled USD497 million in the first quarter, or 12% of total sales. To better capture the growth opportunities and improve performance in the India market, Lenovo has introduced improved business processes and strengthened leadership.
"In forging Lenovo's world sourcing business model, we set out to bridge East and West by creating a unique culture built upon a solid foundation of execution excellence," stated 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."