Lenovo profit falls 5 percent on Motorola acquisition
BEIJING (AP) — Computer maker Lenovo Group says its latest quarterly profit declined 5 percent, reflecting its acquisition of the unprofitable Motorola mobile phone business.
Lenovo said Tuesday it earned $253 million, or $2.30 per share, in the three months ending in December. Revenue rose 31 percent to $14.1 billion.
The profit decline reflected the integration of Motorola into Lenovo. The acquisition closed in October and Lenovo included two months of Motorola’s operations in its results.
Lenovo said its transformation into a supplier of a mobile devices and enterprise products was proceeding quickly. The company said mobile devices accounted for 24 percent of its revenue, while the share contributed by sales of its traditional personal computers declined from 81 percent to 65 percent.