Lenovo’s Q4 Consolidated Sales Increased By 54 Percent To $7.5 Billion, Becomes World’s Second Largest PC Vendor

Posted on May 23 2012 - 10:50am by Editorial Staff

Lenovo today announced results for its fourth fiscal quarter and full year ended March 31, 2012. With full-year record sales of $29.6 billion, an increase of almost 37 percent year-over-year, the company finished its financial year as the world’s second largest PC vendor with a record full-year market share of 12.9 percent. The result was a record full-year pre-tax income of $582 million, an increase of 63 percent year-over-year.

During the fourth fiscal quarter, Lenovo’s consolidated sales increased by 54 percent to $7.5 billion. For the tenth quarter in a row, the Company was the fastest growing among the top four PC vendors, with worldwide PC shipments up 44 percent year-over-year. Compared to an overall industry growth rate of just 4.6 percent year-over-year, Lenovo outgrew the overall industry for the 12th quarter in a row.

Lenovo achieved pre-tax income of $102 million during the fourth fiscal quarter, 69 percent increase over the same period last year. The Company’s gross profit for the fourth fiscal quarter grew to $806 million, an increase of 34 percent year-over-year. Gross margin was 10.8 percent. Operating profit for the fourth quarter was $102 million, up 46 percent year-over-year, while profit attributable to equity holders jumped 59 percent year-over-year to $67 million.

Basic earnings per share for the fourth fiscal quarter were 0.65 US cent, or 5.04 HK cents. Lenovo’s Board of Directors declared a final dividend of 1.29 US cents, or 10 HK cents per share for the fiscal year ended March 31, 2012.

For the 2011/12 fiscal year, Lenovo’s PC shipments grew 34.9 percent year-over-year, compared to an overall industry growth rate of just three percent during the same period. Gross profit for the full year was $3.4 billion, an increase of 46 percent year-over-year. Gross margin was 11.7 percent. While operating profit for the full fiscal year was $584 million, a 53 percent jump over year-over-year. Lenovo’s profit attributable to equity holders grew an impressive 73 percent year-over-year to $473 million.

Financial Results:

  • Record full-year sales of $29.6 billion
  • Record full-year pre-tax income of $582 million
  • Profit attributable to equity holders of $473 million
  • Record full-year market share of 12.9 percent
  • Full-year basic EPS of 4.67 US cents , or 36.32 HK cents
  • Net cash reserves of $4.1 billion (as of March 31, 2012)
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