By Eva Dou
BEIJING-- Lenovo Group Ltd. on Tuesday said its fiscal
third-quarter net profit fell 4.5% from a year earlier, reflecting
the close of its purchase of unprofitable phone maker Motorola
Mobility.
The world's largest maker of personal computers by shipments
said its net profit for the three months ended Dec. 31 fell to $253
million from $265 million a year earlier, beating analyst
estimates, while revenue rose 31% to $14.1 billion.
Lenovo in October closed its $2.91 billion acquisition of
Motorola Mobility from Google Inc. and $2.1 billion purchase of
International Business Machines Corp.'s low-end server
business.
"The two newly acquired businesses are achieving great momentum
in their first quarter of integration," said Lenovo Chief Executive
Yang Yuanqing in a statement. "They are definitely becoming our
growth engines."
Motorola sold more than 10 million units for the first time in
the quarter, the company said.
Founded in China, Lenovo acquired IBM's PC business in 2005. The
company, now based in both the U.S. and China, surpassed
Hewlett-Packard Co. to become the No. 1 PC maker by shipments last
year.
As the global PC market has become saturated, Lenovo has
searched for new avenues of growth including smartphones and
servers.
Write to Eva Dou at eva.dou@wsj.com
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