Lenovo posts 29% jump in Q3 net income

Lenovo posts 29% jump in Q3 net incomeChinese tech giant Lenovo on Wednesday reported better-than-expected profit for quarter ended December 31, thanks to strong sales in both its personal computer (PC) and smartphone businesses.

The Beijing-based company reported an increase of 29 per cent in net income, from $204.9 million in the October-December quarter of 2012 to $265.3 million in the October-December quarter of 2013.

The third-quarter profit figure reported by the company is well above analysts' $247.2 million consensus forecast.

Sales increased 15 per cent from $9.36 billion to $10.8 billion. Analysts had predicted sales of $10.5 billion for the company's third quarter.

The Chinese firm remained the world's No. 1 PC maker, with 18.1 per cent share of the global PC market. Hewlett-Packard Co. (HP) stood at the second spot with a 16.4 per cent share.

Separately, Lenovo CEO Yang Yuanqing said that losses at Motorola Mobility Holdings LLC would end within quarters of completing the acquisition as it reintroduces the smartphone brand in the Chinese market. In a telephone interview, Yuanqing said, "In a few quarters we can turn around the business."

Lenovo is acquiring struggling smartphone maker Motorola from Google Inc. for $2.91 billion in cash & stock. The deal is yet to be approved by U. S. regulators.