Business

PC firm Lenovo's profits jump 25% helped by strong yuan

Laptop in shop in Hong Kong
Image caption Lenovo said tougher times could be ahead

Lenovo, one of the world's biggest computer companies, has reported a 25% jump in earnings helped by a stronger yuan and lower component costs.

Net profit was $99.6m (£61.8m) in the three months to the end of December, up from $79.5m in the same quarter a year earlier.

Most analysts expected net profit to come in at close to $86m.

However, the company said growth may now slow because of economic uncertainty in the US and Europe.

"Worldwide PC market growth has further moderated in the quarter, and certain challenges in the global economy and the debt crisis in mature markets remain," Lenovo said in a statement.

The personal computer, or PC, industry has seen softer consumer demand in its main markets in recent months.

However, Lenovo has been helped by quicker sales growth in newer, less developed markets.

Sales in China rose by 18% in the quarter. In the US and Europe they were up by 22%.

By comparison, sales in developing markets increased 34%.

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