Lenovo Results 03/11/2016

Lenovo Group posted Q2 FY16 consolidated sales of $11.2 bn with a Q2 FY16 net profit of $157 mn, resulting in a net profit margin of 14%. The Q2 FY16 sales had dropped 8% from last year’s Q3 sales of $12.1 bn but were up 12% as compared to the previous quarter. However, the profitability scenario was significantly better than last year given a net loss of $717 mn in Q2 FY15.

While the sales under PC and smart devices segment declined on a y-o-y basis, Lenovo managed to retain its global market leadership leadership for the 14th consecutive quarter, it said. The sales under theMobile Business Group showed a significant 20% jump over the Q1 FY15, while it also under performed on a y-o-y basis. The management also mentioned that they were successfully fixing the challenges they had faced in the Data Center Group unit. (Note, Lenovo has just appointed Kirk Skaugen of Intel to run this part of the business).