Lenovo announced today i third quarter resultsreporting a Group turnover of $15.3 billion and net income of $437 million. Let’s see in detail what the company has indicated.
The official statement reads: “Group revenues from the non-PC businesses peaked at 41% and profitability remained robust as the diversification of Lenovo’s growth engines Solutions and Services Group (SSG) and Infrastructure Solutions Group (ISG) increased revenue to record highs of $1.8 billion and $2.9 billion, respectively, up 23% and 48% year over year.All major business groups contributed one-fifth to operating profit consecutive quarter.”
“As the industry faces significant macroeconomic pressures, Lenovo sees long-term opportunities ahead as global trends in digitization and intelligent transformation continue to accelerate and IT spending is expected to recover at a moderate growth rate over the medium to long term. In the PC sector, real demand, as reflected by activation data in 2022, is much better than industry shipment data indicates, as the channel consumes excess inventory.The Group expects year-over-year growth will resume in the second half of the calendar year, with end-user demand above pre-Covid levels.”
“The Group continues to undertake proactive actions to further strengthen its cost competitiveness. It will do this by investing in high-margin growth engines and reducing run rate operating expenses. Lenovo’s cash balance remains strong, the cash conversion cycle continues to improve, channel inventory has shrunk, and the company continues to invest in R&D and sustainability, continuing its goal of doubling profitability at middle term.”
Here then is it statement by Yuanqing Yang, Chairman and CEO: “Today’s solid results demonstrate that our services-based transformation strategy is paying off. Diversification of our non-PC growth engines now accounts for more than 40% of our group’s revenue and solidly increases profitability Despite the challenging macroeconomic environment, we have maintained our market leadership in PCs.I remain confident that our clear strategy, operational resilience, healthy liquidity and continued investment in innovation will ensure us long-term sustainable growth and improved profitability “.
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