Lenovo Group's First-Quarter Profit Declined 66%
By Sherry Qin
Lenovo Group's net profit fell 66% in its first quarter, weighed by its business in intelligent devices and infrastructure solutions.
Net profit for the three months ended June was $177 million, the world's largest PC maker said Thursday. That compared with a profit of $516 million a year earlier, the company said.
Revenue fell 24% to $12.90 billion, as sales of its main products--PCs, smartphones and other device--fell 28%. The company cited a sector-wide challenge of clearing inventories for the decline. Its efforts to draw down excess channel inventory has laid a foundation for future sales growth, it added.
Lenovo's infrastructure-solutions segment also weighed on results, declining 8% on year to $1.91 billion. The company attributed the decline to demand softness in servers, as well as the industry's slower-than-expected transition to the next-generation platform.
Lenovo's China revenue fell 29% on year due to lower demand in its PC and infrastructure businesses.
The company said its PC business is stabilizing and well-positioned for an on-year recovery later this year. The company plans to make further investments to tap opportunities in Non-PC areas, including fast-growing accessories and work-collaboration solutions. It is seeing greater opportunities in AI-related applications and will leverage its expertise in smart devices to provide more intelligent experiences, it added.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
August 17, 2023 00:50 ET (04:50 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations