Lenovo Group 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, Lenovo finished its financial year as the world’s second largest PC vendor with a record full-year market share of 12.9 percent. Throughout the year, Lenovo continued to demonstrate its ability to execute against the Company’s strategy of “protect and attack,” in established markets and new markets respectively, while achieving balanced growth in all geographies, customer segments and product lines. 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 a healthy 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 $S102 million during the fourth fiscal quarter, an impressive 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.
“The 2011/12 fiscal year was a record-setting year for Lenovo, where we set an all-time high for revenue, shipment, market share and pre-tax income. Our fiscal year ended impressively with strong momentum. Lenovo’s global PC shipments grew by 35% year-over-year, outperforming the industry by ten times, global market share increased by three percentage points, and net profit jumped by 73% year-over year. During the fourth fiscal quarter, Lenovo was the fastest growing among the top PC vendors in Global Emerging Markets, and Commercial Markets, as well as Consumer Markets and Mature Markets, where for the first-time ever, we reached double-digit market share in both. We furthered our leadership position in the Global Emerging Markets, in which Lenovo already achieved double digit-market share in 15 markets and became number one in India,” Yang Yuanqing, Lenovo Chairman and CEO, said.
“With the emergence of multiple devices such as smartphones, tablets and smart TV, our industry is entering the PC + era. Lenovo is focused on leading the PC industry, and building upon that leadership in the PC+ era.”