Lenovo's results show profit

HONG KONG (Reuters) - Lenovo Group Ltd., the world's third-largest computer

maker, beat expectations with its quarterly earnings on Thursday, even as it

struggled to turn around the loss-making business it bought from IBM.






China's largest maker of personal computers unveiled a net profit of US$5
million in the fiscal first quarter ended June, versus a net profit of HK$357

million a year earlier.






That result beat a consensus mean forecast for a net loss of HK$38.5 million,
according to five analysts polled by Reuters this week.






Lenovo, one of a handful of Chinese firms trying to forge a global brand by
investing abroad, has been coping with expenses arising from its $1.25 billion

purchase of IBM's PC arm in 2005 and stiff competition from bigger rivals Dell

Inc. and Hewlett-Packard Co.






Shares of Lenovo closed on Thursday down 1.98 percent at HK$2.47 ahead of the
results release. They fell 13 percent from April to June, underperforming a 3

percent gain on the benchmark Hang Seng Index during the same period.