Personal computer maker Lenovo Group (LNVGY.PK) Thursday reported a net profit for the second quarter that more than doubled from last year, benefited by a gain on sales of investments and lower operating and restructuring costs, despite a slight decline in sales.
For the second quarter, net earnings attributable to shareholders were US$53 million or US$0.55 per share compared with US$23 million or US$0.25 per share in the previous-year period.
During the three-month period, the company recorded a one-time gain of US$38 million with regard to disposal of investment as other income.
The company's sales for the period slipped 5% to US$4.10 billion from US$4.33 billion in the second quarter of the prior year. Lenovo's gross profit margin was 10.6% compared with 13.1% in the corresponding period prior year.
By product group, consolidated sales of Lenovo desktop computers worldwide slipped 13% from the prior year to US$1.5 billion in the second fiscal quarter. Consolidated sales for Lenovo's notebook PC business worldwide totaled US$2.6 billion, down 1% year-over-year.
By geography, Lenovo China sales for the three-month period, accounting for 49% of the company's worldwide sales, was US$2.0 billion, up 9% year-over-year.
In emerging markets, Lenovo's consolidated sales for the quarter totaled US$618 million, or 15% of the company's worldwide sales. PC shipments across the region rose 10% year-over-year in the second quarter, compared to an overall industry decline of 8%.
Consolidated sales from mature markets for the period was US$1.5 billion, or 36% of the company's worldwide sales. Lenovo stated that flat demand in commercial PC opportunities across Western Europe and North America resulted in a year-over-year growth of 0.4% in Lenovo's PC shipments in mature markets during the quarter. PC shipments in North America rose 1% year-over-year, whereas PC shipments in Western Europe decreased year-over-year.
During the second quarter, worldwide PC shipments increased 17% year-over-year, while industry PC shipments grew 2.3% worldwide for the same period.
Excluding restructuring costs and other income, operating expenses incurred by Lenovo during the period slumped to US$390 million from US$510 million a year earlier. Restructuring costs for the quarter were US$3 million versus US$24 million in the previous-year period.
In Wednesday's regular trading session, LNVGY.PK closed trading on the Pink Sheets at $11.25 per share. In the past 52-week period, the shares have been trading in a range of $3.35 to $12.24.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.