Lenovo Group (00992) 3Q profit down 67% to US$98.44m

    Lenovo Group (00992) said its profit attributable to equity holders for the third quarter ended 31 December 2016 dropped 67.2% year-on-year to US$98.44 million.
  Basic and diluted earnings per share were US0.9 cents.
  The revenue was US$12,169 million, a decrease of 5.8% from a year earlier. Gross profit dropped 15.4% year-on-year to US$1,885 million. Gross margin decreased by 1.5 percentage point year-on-year to 13.1%, impacted largely by components cost pressure arising from their supply constraint across various products.
  For the nine months ended 31 December 2016, Lenovo reported a profit attributable to equity holders of US$428 million, as compared to the loss of US$308 million for the same period in 2015.
  For the third quarter of FY2016, the Group's global PC unit shipments increased 2% year-on-year to 15.7 million, against a market decline of 2%. Lenovo's market share continued to increase and achieved a record high level. Its worldwide PC market share was 22.4% as of fiscal quarter three, an increase of 0.8 percentage point year-on-year, according to preliminary industry estimates. Rrevenue of the Group's PCSD business was US$8,598 million, representing about 70% of the Group's total revenue, and a year-on-year increase of 2%. The business group recorded a pre-tax profit of US$431 million, up 7% year-on-year.
  The Group's worldwide smartphone shipments for the quarter recorded a decline of 26% year-on-year. Nevertheless, its shipments have been improving since fiscal quarter one and had a quarter-on-quarter increase of 7% in fiscal quarter three. Lenovo's worldwide smartphone market share was 3.5% as of 3Q, a decrease of 1.6 percentage points year-on-year.