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Categories: Lenovo Motorola

(Reuters) – China’s #Lenovo Group (0992.HK), the world’s biggest PC maker, said first-quarter profit jumped nearly two-thirds, helped by a one-off asset sale, but its mobile arm lost money again as a $3 billion bet on buying #Motorola to diversify has yet to pay off. Lenovo said on Thursday net profit climbed 64 percent to $173 million for the quarter ended June compared with a year earlier, when profit was hit by restructuring costs. A $132 million gain from the sale of a Beijing office property boosted profit well beyond the $130.1 million average estimate of analysts polled by Thomson Reuters SmartEstimates. But the company, which bought the Motorola handset business in 2014 to reduce exposure to a shrinking global PC market, said global smartphone shipments plunged 31 percent in the quarter from a year ago. It said the mobile division – housing Motorola and other operations – won’t make a profit before the fiscal half beginning October 2017. “We can completely turn the business around,” Chairman and Chief Executive Officer Yang Yuanqing told Reuters in an interview. Lenovo is eyeing the more lucrative premium smartphone sector, he said

http://mobile.reuters.com/article/idUSKCN10S2IZ

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