Tech giant Lenovo Group Ltd on Thursday reported a market-beating three-fold surge in quarterly profit helped by strong personal computer (PCs) sales, and said its production plans had not been affected by the ongoing Sino-US trade war. Still investors, worried that the conflict was morphing into a technology cold war, dumped shares of Asian tech companies, with Lenovo's stock price falling as much as 6.3% to its lowest in nearly four months.
Dual-headquartered in China and the United States, the world's largest PC maker on Thursday said it is "well poised to navigate the turbulence in the geopolitical and macro-economic environment". The United States has sought to address what it believes is imbalanced trade with China, unleashing waves of tit-for-tat import tariffs on billions of dollars worth of goods.
Lenovo said it was less exposed to the US market than competitors and that most of its products are not subject to the new tariffs. "We definitely don't want to see this situation," Chairman and Chief Executive Officer Yang Yuanqing told Reuters in an interview. Lenovo's net profit in the fourth quarter ending March rose more than three fold to $118 million from a year prior when it suffered a writedown. The result compared with the $91.4 million average of seven analyst estimates compiled by Refinitiv.
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