China's Lenovo swings to second-quarter profit of $157 million, beats analyst estimates

Reuters News
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Posted: Nov 03, 2016 4:48 AM

By Sijia Jiang

HONG KONG (Reuters) - China's Lenovo Group Ltd <0992.HK>, the world's largest personal computer (PC) manufacturer by shipments, on Thursday said it returned to profit in its second fiscal quarter, beating analyst estimates, helped by the disposal of assets.

Net profit reached $157 million for the three months ended Sept. 30, from its worst-ever quarterly loss of $714 million in the same period a year earlier when Lenovo booked one-off costs to restructure and integrate the mobile business of Motorola.

The result compared with a Thomson Reuters SmartEstimate of $131 million drawn from the estimates of 14 analysts.

Revenue fell 8 percent to $11.2 billion, versus the $11.02 billion analyst estimate.

For the first half, net profit was $330 million, versus a loss of $609 million a year earlier, while revenue fell 7 percent to $21.3 billion.

(Reporting by Sijia Jiang; Editing by Christopher Cushing)