Lenovo Q3 profit up 25 p.c, best in over 2 years

HONG KONG: Lenovo Group Ltd, the world's No.4 PC brand, beat expectations by posting a 25 per cent rise in third-quarter net profit, its best result in more than two years, helped by a strengthening Chinese currency and lower component costs.

The company reported a net profit of $99.65 million for the October-December quarter, up from $79.5 million a year earlier. The result beat expectations for an $86.2 million net profit from seven analysts polled by Thomson Reuters I/B/E/S. The PC maker's revenue rose 22 per cent to $5.81 billion from $4.76 billion a year ago. Lenovo had posted a net profit of $76.6 million in its fiscal second quarter.

The results come a day after Dell Inc reported forecast-beating earnings and margins on lower component costs and demand from companies replacing older technology.

Lenovo shares gained 2.5 per cent in 2010, lagging a 5.3 per cent advance by the benchmark Hang Seng Index .HSI.