Business

Lenovo's profit nearly doubles on higher overseas sales

Lenovo
Image caption Lenovo has been trying to boost its presence in overseas markets in order to boost profits

Chinese PC maker Lenovo has reported better-than-expected profits for the first quarter on higher overseas and commercial sales.

Net profit was $108.8m (£65.8m) for the three months to the end of June, a 98% surge compared with the same period last year, Lenovo said.

The surge was driven by emerging markets, with a 46% jump in shipments.

The latest numbers helped Lenovo become the world's third-largest PC vendor by total shipments.

"Our business continues to climb and everything has been executed well according to our original plans," said Liu Chuanzhi chairman of Lenovo.

Tough times?

While Lenovo has reported robust growth in recent years, the company warned that the current global economic environment posed a threat going forward.

"Challenges to worldwide PC demand remain such as the pace of global economic recovery and the ongoing debt crisis in western Europe," Lenovo said in a statement.

There have been concerns that a slowdown in the US coupled with the debt crisis in Europe may hit demand.

Lenovo's warning came after PC-maker Dell slashed its sales growth forecast on Tuesday, blaming a "more uncertain demand environment".

However, analysts said that the Chinese PC-maker was better placed than its rivals to withstand a slowdown.

"I don't think Lenovo's exposure to the public sector is that big," said Gokul Hariharan of JP Morgan.

"Because of that, they are likely to be much better off in terms of growth," he added.

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