Lenovo reports 88-% rise in net profit for quarter ended 30 September

Lenovo Group Ltd's net profit was up 88 per cent in the most recent quarter, with strong growth in shipments powering the Chinese company past Dell Inc to emerge as the world's second-largest personal-computer maker.

The results come with Lenovo seeking acquisitions and tapping soaring demand in emerging markets, including China, to spur growth as global economic recovery remains weak. The results also come with growing concerns in the industry about a slowdown in PC sales and competition for those sales from tablet computers such as Apple Inc's iPad.

Lenovo said today its net profit was up at $143.9 million in the fiscal second quarter ended 30 September from $76.6 million a year earlier and above the average $117.8 million that five analysts had projected in a Dow Jones Newswires poll. Revenue rose was up 35 per cent at $7.79 billion from $5.76 billion, which the average $7.2 billion forecast in the poll.

The company listed in Hong Kong submitted in a written statement that it intended to continue to seek ''inorganic growth opportunities'' in the PC industry.

According to Lenovo chief executive, Yang Yuanquing the company had money, so money was not quite a problem. The problem was whether the company had the appropriate target for an acquisition, he added.

The PC maker this year bought German PC maker Medion AG, for which it had said it would pay as much as €465 million, or about $640 million, in cash and stock and entered into a joint venture this year with Japanese PC maker NEC Corp.