Lenovo Reports First Quarter 2009/10 Results

Donnerstag, 06.08.2009 03:45 von Hugin - Aufrufe: 298

HONG KONG--(Marketwire - August 06, 2009) - Lenovo (HKSE: 992) (ADR:
-- Quarterly sales of US$3.5 billion
-- Operating profit of US$16 million, pre-tax income of US$322K
(excluding restructuring costs/one-off items)
-- Restructuring charge of US$3 million
-- Loss attributable to equity holders of US$16 million
-- Basic EPS of (0.18) US cents, or (1.40) HK cents
-- Net cash reserves of US$1.4 billion (as of June 30, 2009)
Lenovo Group today reported results for its first fiscal quarter
ended June 30, 2009. During the first quarter, Lenovo's worldwide PC
shipments grew 1.1 percent year over year. Comparatively, industry PC
shipments declined 3.3 percent worldwide for the same period.
Consolidated sales for the first fiscal quarter decreased 17.9
percent year over year to US$3.5 billion. The Company's gross profit
for the quarter declined 37 percent year over year, with gross margin
at 11 percent.
Operating profit for the first fiscal quarter was US$16 million
(excluding restructuring costs/one-off items) an improvement over the
previous fiscal quarter loss of US$76 million. Lenovo reported a
breakeven first quarter pre-tax income of US$322K (excluding
restructuring costs/one-off items) compared to the Company's previous
quarterly loss of US$81 million. The loss attributable to equity
holders for the quarter was US$16 million, compared to the Company's
previous fiscal quarter's loss attributable to equity holders of
US$264 million.
During the first fiscal quarter, Lenovo continued its previously
announced worldwide restructuring program, designed to make the
Company more cost competitive and operationally efficient. As a
result of the restructuring, Lenovo expects to save approximately
US$300 million on an annual run-rate basis. The Company incurred a
restructuring cost of US$3 million in the first quarter.
Basic loss per share for the first fiscal quarter was (0.18) US
cents, or (1.40) HK cents. Net cash reserves as of June 30, 2009,
totaled US$1.4 billion.
"There was little doubt that this year was going to be a challenge to
our industry, but we are encouraged that some of the recent actions
we have taken are helping our business get off to a hopeful start
during the first quarter," said Lenovo Chairman Liu Chuanzhi. "Our
expectations for growing our business profitably worldwide remain
solidly in place, and while there is a tremendous amount of work yet
to be done to get our business to where it needs to be, the changes
we are making will help strengthen our ability to go after new
markets as global economic conditions improve."
"The decisive actions we took last quarter to align our business with
changing market conditions and extend our transactional business
model globally have started to pay off. As a result, Lenovo achieved
its highest quarterly global market share since the acquisition of
IBM's PC division," said Yang Yuanqing, Lenovo CEO. "With the global
economic environment still unstable, we will continue to extend our
leadership in China, strive to restore profitability in mature
markets, and also seize opportunities in emerging markets and the
transactional space. Furthermore, we will continue to optimize our
cost structure and diligently implement our strategies, designed to
drive long-term profit growth and development of Lenovo."
-- Lenovo China posted US$1.7 billion in consolidated sales in the
first fiscal quarter, accounting for 48 percent of the Company's
worldwide sales. During the quarter, Lenovo further strengthened its
number-one position in China by 0.3 percentage point, which resulted
in an industry-leading market share in China of 28.6 percent.
Lenovo's PC shipments in China increased 15 percent year over year in
the quarter, exceeding the increase of PC industry shipments in China
of 14 percent overall.
-- In Emerging Markets* Lenovo's consolidated sales totaled US$474
million for the first fiscal quarter, or 14 percent of the Company's
worldwide sales. Lenovo's PC shipments across the region decreased
six percent year over year in the quarter. Sales growth in the region
was stalled by Lenovo's lack of penetration in the consumer market.
Notably, Lenovo showed improvement in some Southeast Asian and
Pacific Rim countries, and grew market share in Latin America, Russia
and Turkey.
-- Mature Markets** accounted for US$1.3 billion in consolidated
sales, or 38 percent of the Company's worldwide sales during the
first fiscal quarter. Sluggish demand in commercial PC opportunities
across Western Europe and North America resulted in a year over year
decrease of 17 percent in Lenovo's PC shipments in mature markets
during the quarter. However, Lenovo made significant progress in
restoring profitability by reducing its losses in North America,
Australia/New Zealand and Japan.
-- Lenovo's Notebook computers continued to be the largest
contributor to the Company's sales worldwide, generating 64 percent
of Lenovo's total sales revenue. Consolidated sales for Lenovo's
notebook PC business worldwide in the first fiscal quarter totaled
US$2.2 billion, down nine percent year over year. The Company's
notebook shipments worldwide in the quarter were up 21 percent year
over year. Lenovo is well placed to take advantage of the industry
shift to lower-priced notebook PCs and continued to roll out new
IdeaPad netbooks such as the S10-2. Also announced in the first
quarter was the new ThinkPad T400s, with its well-received 'shift'
and 'delete' keys redesign.
-- Consolidated sales of Lenovo Desktop computers worldwide decreased
32 percent year over year in the first fiscal quarter to US$1.2
billion, or 34 percent of Lenovo's total sales revenue. Desktop
shipments for the same period declined 15 percent. Across the world,
the market continued to shift from desktops to notebooks, and Lenovo
continued to simplify its desktop product portfolio to drive
operational efficiencies and reduce cost. During the first quarter
Lenovo introduced the all-in-one IdeaCentre C300, a value net-top PC.
Lenovo (HKSE: 992) (ADR: LNVGY) is dedicated to building
exceptionally engineered PCs. Lenovo's business model is built on
innovation, operational efficiency, and customer satisfaction as well
as a focus on investment in emerging markets. Formed by Lenovo
Group's acquisition of the former IBM Personal Computing Division,
the Company develops manufactures and markets reliable, high-quality,
secure, and easy-to-use technology products and services worldwide.
Lenovo has major research centers in Yamato, Japan; Beijing, Shanghai
and Shenzhen, China; and Raleigh, North Carolina. For more
information, see www.lenovo.com.
* includes Africa, Asia Pacific, Central/Eastern Europe, Hong Kong,
India, Korea, Latin America, Mexico, Middle East, Pakistan, Russia,
Taiwan, Turkey
** includes Australia/New Zealand, Israel, Japan, North America,
Western Europe and global accounts
For the fiscal quarter ended June 30, 2009
(in US$ millions, except per share data)
Q109/10 Q108/09 Y/Y%CHG
--------- --------- ---------
Sales 3,457 4,213 (17.9%)
--------- --------- ---------
Gross Profit 380 601 (36.7%)
--------- --------- ---------
Gross Profit Margin 11.0% 14.3% (3.3 pts)
--------- --------- ---------
Operating Expenses(1) (366) (469) (21.9%)
--------- --------- ---------
Operating Expense Margin(1) 10.6% 11.1% (0.5 pt)
--------- --------- ---------
Other Income, net 2 1 48.8%
--------- --------- ---------
Operating Profit(1) 16 133 (88.2%)
--------- --------- ---------
Other Non-Operating (Expenses) /
Income (15) 4 n/a
--------- --------- ---------
Pre-tax Income(1) 0 137 n/a
--------- --------- ---------
Restructuring Cost (3) - n/a
--------- --------- ---------
One-off Items - - n/a
--------- --------- ---------
Pre-Tax (Loss)/Income (2) 137 n/a
--------- --------- ---------
(Loss)/Profit Attributable to Equity
Holders (16) 110 n/a
--------- --------- ---------
EPS (US cents)
Basic (0.18) 1.25
Diluted (0.18) 1.15
--------- --------- ---------
(1) Excludes restructuring costs & one-off items
Hong Kong
Angela Lee
(852) 2516-4810
Jay Chen
(8610) 5886-2552
Ray Gorman
(919) 257-6325
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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