Business Wire

Clear Mission, Strategy and Execution Power Lenovo to Third Straight Double-Digit Quarterly Revenue Growth and Back-to-Back Quarterly Profit Growth

Jaa

Lenovo Group (HKSE: 0992) (PINK SHEETS: LNVGY) today announced results for its second fiscal quarter ended September 30, 2018. For the third straight quarter, Lenovo achieved strong double-digit growth in revenue year-over-year. Group revenue reached US$13.4 billion, up 14% year-over-year (18% YOY excluding currency impact) – reporting its highest quarterly revenue for nearly four years. The company also reported its second consecutive quarter of strong, pre-tax income of US$213 million, six times as much as the previous year (+US$178 million) as all businesses reported profit improvements.

In the second fiscal quarter, Lenovo’s profit attributable to equity holders grew to US$168 million, up US$91 million sequentially, and US$29 million year-over-year. Basic earnings per share in the second fiscal quarter was 1.41 US cents or 11.06 HK cents. Lenovo’s Board of Directors declared an interim dividend of 6.0 HK cents per share.

“Today’s results show that Lenovo’s focus on Intelligent Transformation continues to successfully underpin our growth in both revenue and profitability. But our numbers only tell part of our story. I’m proud of how we are delivering on both our transformation strategy and our turnaround promise. There is no doubt that Lenovo is in a period of strong, sustainable growth and I am confident that our clear mission, strategy and execution capabilities will continue to drive even stronger results in coming quarters,” said Yang Yuanqing, Lenovo Chairman and CEO.

Business Group Overview

During Q2, FY2018/19, Lenovo continued to expand on its new phase of “Intelligent Transformation” growth, thanks to both financial discipline and operational excellence, as well as a lengthening list of technology innovations across all its key business units. Decisive steps to restructure businesses and create new efficiencies taken in prior quarters are already yielding significant results. Lenovo’s key business units each tallied significant growth and market strength during the quarter:

The Intelligent Devices Group, energized by the synergy of shared platforms and resources, delivered a strong revenue growth of 10% year-on-year, amounting to US$11.84 billion.

  • During the quarter, the PC and Smart Devices (PCSD) business under IDG reported US$10.2 billion in revenue, up 18% YOY, the first time ever that this business has surpassed US$10 billion in revenue. Lenovo is now not only the world’s undisputed leader in PC sales with record market share of 23.7%, but the Company also continues to lead industry profitability at 5%. The quarter saw continued strong double-digit growth for high-growth segments including Legion gaming, ThinkStation workstations and thin and light Yoga, ThinkPad and IdeaPad categories – bolstering future premium growth in volume, revenue and profit. The business continues to deliver on its Intelligent Transformation vision with newly launched innovations in Smart IoT products (Lenovo Smart Home Essentials) that follow on from the Lenovo Smart Display launched earlier this year.
  • The Mobile Business Group (MBG) under IDG also continued its marked improvement during Q2, executing on its turnaround strategy that sees the business focusing on reducing expense, simplifying the product portfolio and focusing on core profitable markets. The quarter saw a major strategic milestone achieved - with operational break-even of Motorola globally - reducing operating expenses by US$175 million compared to Q2 of last year. Of particular note, North American shipments were up sharply during the quarter by 53.4% compared to last year’s Q2, while also showing margin improvement. Topline growth continued in Latin America where Lenovo is #2 regionally. The China business greatly improved revenue, volume and profitability (84.6%, 279.4% and PTI% 25.2% respectively).

Lenovo’s Data Center Group (DCG) reported its fifth consecutive quarter of profit growth (PTI% up 9.5% pts YOY) on a 58% YOY increase in revenue to US$1.5 billion. Lenovo is not only innovating on solutions it brings to market, highlighted by the strong growth of Hyperscale and Software Defined Infrastructure (SDI), but how the company is bringing those technologies to market. Key global strategic partnerships such as that with NetApp announced in September, have significantly expanded Lenovo’s storage and data management market segment coverage. Hyperscale continued its triple digit YOY growth for the third consecutive quarter; SDI reported strong revenue growth of 150% and the seventh consecutive quarter of 100%+ growth. The division’s momentum during the quarter was underscored by the triple-digit revenue growth in North America, and double-digit growth in EMEA, China and Asia Pacific geographies. Additionally, YOY profitability in all geographies also improved.

* IDC CY2018 Q3 Worldwide Quarterly Personal Computing Device Tracker
** IDC CY2018 Q2 X86 Server Final Historical

About Lenovo

Lenovo (HKSE: 0992) (PINK SHEETS: LNVGY) is a US$45 billion Fortune Global 500 company and a global technology leader in driving Intelligent Transformation through smart devices and infrastructure that create the best user experience. Lenovo manufactures one of the world’s widest portfolios of connected products, including smartphones (Motorola), tablets, PCs (ThinkPad, Yoga, Lenovo Legion) and workstations as well as AR/VR devices and smart home/office solutions. Lenovo’s data center solutions (ThinkSystem, ThinkAgile) are creating the capacity and computing power for the connections that are changing business and society. Lenovo works to inspire the difference in everyone and build a smarter future where everyone thrives. Follow us on LinkedIn, Facebook, Twitter, Instagram, Weibo, read about the latest news via our StoryHub, or visit our website at http://www. lenovo.com.

           
 

LENOVO GROUP

FINANCIAL SUMMARY

For the fiscal quarter ended September 30, 2018

(In US$ millions, except per share data)

 
 
Q2 18/19
   

Q2 17/18

   
Y/Y CHG
Revenue 13,380     11,761     14%
Gross profit 1,794     1,613     11%
Gross profit margin 13.4%     13.7%     (0.3) pts
Operating expenses (1,504)     (1,525)     (1%)
Expenses-to-revenue ratio 11.2%     13.0%     (1.7) pts
Operating profit 290     88     230%
Other non-operating expenses (77)     (53)     46%
Pre-tax income 213     35     503%
Taxation (40)     118     N/A
Profit for the period 173     153     13%
Non-controlling interests (5)     (14)     (64%)
Profit attributable to equity holders 168     139     21%

EPS (US cents)
   Basic
   Diluted


1.41
1.40
   
1.26
1.26
   
0.15
0.14
 

Contact information

Lenovo Group
Hong Kong
Angela Lee, +852 2516 4810
angelalee@lenovo.com
or
London
Charlotte West, +44 7825 605720
cwest@lenovo.com
or
Zeno Group
LenovoWWcorp@zenogroup.com

Tietoja julkaisijasta

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Tilaa tiedotteet sähköpostiisi

Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.

Lue lisää julkaisijalta Business Wire

Process Systems Enterprise: gPROMS FormulatedProducts 1.4 Includes Enhanced Capabilities Linking Digital Design to Digital Operations19.4.2019 10:58:00 EESTTiedote

Process Systems Enterprise (PSE), the Advanced Process Modelling company, today released version 1.4 of gPROMS FormulatedProducts, the mechanistic model-based environment for integrated digital design of robust formulated products and their manufacturing processes, and related digital process operation. This release introduces major enhancements to both the gPROMS FormulatedProducts model libraries and the underlying gPROMS platform 6.0, including morphological crystallizer and sensor models to capture particle size and shape evolution, enhanced continuous direct compression models and improved wet granulation models. Platform enhancements include support for cluster computing, to significantly speed up execution of parameter estimation and other complex numerical solutions, and comprehensive global system analysis of dynamic systems for rapid exploration of the time-varying decision space and systematic risk and uncertainty analysis. Version 1.4 also introduces two key usability enhan

LOXAM Contributes to the Reconstruction of Notre Dame De Paris Cathedral19.4.2019 10:44:00 EESTTiedote

In the wake of the Notre Dame de Paris blaze on Monday 15 April, Loxam the leading equipment rental company in Europe is playing its part in the reconstruction project of the partly destroyed cathedral. A rental operator in the construction equipment, LOXAM pledges to provide, free of charge, machines to the companies and tradesmen who will take part in these restoration works for the scheduled duration of five years. “Notre Dame de Paris Cathedral is the legacy of accomplished builders that we ought to preserve. As a committed rental operator, Loxam wishes to contribute to the rehabilitation of this monument by providing equipment for an overall 10-million € value over the upcoming five years” Gérard DEPREZ, President of LOXAM, indicates. With a fleet of over 200,000 machines, Loxam is meeting the needs of all tradesmen operating on this worksite. View source version on businesswire.com: https://www.businesswire.com/news/home/20190419005025/en/ Contact information PRESS : Virginie Ada

IFF to Release First Quarter 2019 Results May 618.4.2019 23:15:00 EESTTiedote

Regulatory News: International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF), a leading innovator of scent, taste, and nutrition, announced that it will release its first quarter 2019 earnings results following the market close on Monday, May 6, 2019. The management team will host a live webcast on Tuesday, May 7, 2019 at 10:00 a.m. ET to discuss results and outlook with the investor community. Investors may access the live webcast and accompanying slide presentation on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay. Meet IFF International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF) is a leading innovator of scent, taste, and nutrition, with 97 manufacturing facilities, 105 R&D centers, and 39,000 customers globally. At the heart of our company, we are fueled by a sense of discovery, constantly asking “what if?”. That passion for exploration dri

Gilead Sciences to Release First Quarter 2019 Financial Results on Thursday, May 2, 201918.4.2019 23:05:00 EESTTiedote

Gilead Sciences, Inc. (Nasdaq: GILD) announced today that its first quarter 2019 financial results will be released on Thursday, May 2, after the market closes. At 4:30 p.m. Eastern Time, Gilead’s management will host a conference call to discuss the company’s financial results for the first quarter 2019 and provide a business update. The live webcast of the call can be accessed at the company’s Investors page at http://investors.gilead.com/. Please connect to the company’s website at least 15 minutes prior to the start of the call to ensure adequate time for any software download that may be required to listen to the webcast. Alternatively, please call 877-359-9508 (U.S.) or 224-357-2393 (international) and dial the conference ID 5259422 to access the call. Telephone replay will be available approximately two hours after the call through 8:00 p.m. Eastern Time, May 4, 2019. To access the replay, please call 855-859-2056 (U.S.) or 404-537-3406 (international) and dial the conference ID

Andersen Global Expands Africa Presence; Signs Collaboration Agreement in Economic Hub of South Africa18.4.2019 16:30:00 EESTTiedote

Andersen Global is excited to announce the addition of its first collaborating firm in South Africa. Tabacks Attorneys and Corporate Law Advisors, headquartered in Johannesburg, South Africa, has signed a Collaboration Agreement with Andersen Global, an international association of member and collaborating firms. South Africa marks the tenth country in Africa in which Andersen Global has a presence. Led by Chairman David Woodhouse, Tabacks has a team of 27 lawyers who offer legal assistance and commercial advice to a diverse clientele in construction, manufacturing, energy, mining, explosives, retail, hospitality, logistics, pharmaceutical, property and banking industries. The firm is considered a leading law firm in South Africa, and its practice areas include competition law, commercial law, mining, employment law, environmental health & safety law, tax and litigation. “The global economy is rapidly changing, which brings unique challenges to corporate and commercial law,” said David

Amazon and Google Announce Official YouTube Apps to Launch on Fire TV; Prime Video App Coming to Chromecast and Android TV18.4.2019 16:00:00 EESTTiedote

Today, Amazon (NASDAQ: AMZN) and Google (NASDAQ: GOOGL) announced that in the coming months, the two companies will launch the official YouTube app on Amazon Fire TV devices and Fire TV Edition smart TVs, as well as the Prime Video app for streaming to Chromecast and Chromecast built-in devices. In addition, Prime Video will be broadly available across Android TV device partners, and the YouTube TV and YouTube Kids apps will also come to Fire TV later this year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190418005212/en/ “We are excited to work with Amazon to launch the official YouTube apps on Fire TV devices worldwide,” said Heather Rivera, Global Head of Product Partnerships at YouTube. “Bringing our flagship YouTube experience to Amazon Fire TV gives our users even more ways to watch the videos and creators they love.” “We’re excited to bring the Prime Video app to Chromecast and Android TV devices, and to give our c

Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.

Tutustu uutishuoneeseemme