Lenovo profits soar 178 per cent

Lenovo profits soar 178 per cent

Chinese PC manufacturer's revenue is up 20 per cent to £2.1bn for the second quarter

Lenovo's profits rocketed 178 per cent to $105m (£50m) during the second quarter of the year.

The strong growth easily outstripped the forecast $88m (£42m) predicted by analysts and represents a massive improvement on the $38m (£18m) recorded last year.

Sales leapt 20 per cent to $4.4bn (£2.1bn) for the period, while global PC shipments rose 23 per cent – beating the industry average of 15.7 per cent.

Lenovo's results reflect progression from the company's 2005 purchase of IBM's personal computing division, said chairman Yang Yuanqing. The company will now cease trading under the IBM brand name, ending the era of the IBM PC.

“Our strong performance once again proved that Lenovo has successfully completed the integration phase of our acquisition, and we are now entering a new phase of profitable growth,” said Yuanqing.

“In this new phase, we will continue to strengthen the competitiveness of our products and improve operational efficiency, so as to further enhance profitability."