Thanks to the increased global demand for its personal computers and smart devices, Chinese tech giant Lenovo Group managed to report better-than-expected results for its full fiscal year ending on March 31. The company claims that its robust results in a testament to its position of strength amid the economic downturn and global disruptions.
For its fiscal year, Lenovo reported revenues that exceeded the $50 billion mark for the second consecutive year, just shy of $51 billion. Profits for the year had surged by more than 19 percent when compared to the previous year, reaching around $1.02 billion before taxes. Full-year net income hit $665 million, a 12 percent increase when compared to its net income reported in the previous year.
The jump in its net profits was heavily boosted by earnings generated by its Intelligent Devices Group (IDG), which reported a pre-tax income of over $2 billion. The company's PC and Smart Devices Group, which is under its IDG business, reported more than $40 billion in revenues and a pre-tax profit of $2.3 billion. According to the company, its PC and smart devices held about 24.5 percent of the global market at the end of its fiscal year in March.
The company's second business unit, its Mobile Business Group (MBG), underperformed during its latest fiscal year. The unit reported a pre-tax loss of about $42 million on revenues of around $5.2 billion. Lenovo reasoned that the loss was mostly due to the shutdown of its smartphone manufacturing facilities in Wuhan due to the coronavirus pandemic.
Lenovo chairman and chief executive officer, Yang Yuanqing, stated that despite the unprecedented challenges and the significant global changes, the company has still managed to transform its business. He added that he was proud of the company's response to the global pandemic and how it had managed to fulfill its duty as a corporate citizen.
During the global health and economic crisis, Lenovo managed to utilize its massive supply chain, including more than 30 in-house and third-party manufacturing facilities, to adjust its production capacity to meet the changing demands. Yang stated that the company will continue to leverage its strengths and its global footprint to transform and evolve its business while tapping new opportunities as they present themselves.
Lenovo also attributed its success to its resilience and its ability to rapidly adapt to market changes. It also heavily depended on its core principles of operational excellence throughout the year, despite the unprecedented disruptions. Through these principles, the company was able to continue serving its customers worldwide.
