Yang: Motorola's losses have not been a significant drag on Lenovo

Absrtact: At Lenovo's third-quarter meeting today, Lenovo CEO Yang was confident of Lenovo's performance in the acquisition of Motorola Mobility and the former IBM x86 server (System x) two new operations. Excluding the intangible assets generated by the acquisition of Motorola and System X, he said

Lenovo's CEO, Yang, was confident in Lenovo's move to acquire Motorola and the performance of the former IBM x86 server (System x) two new operations at Lenovo's third-quarter meeting today. He said that excluding the acquisition of intangible assets such as Motorola and System X, the interest on acceptance notes, and the Non-cash costs derived from the accounting process, Lenovo's third quarter grew at a rapid pace, with a net profit of $327 million and an increase of 23%.

Lenovo's overall earnings improvement was mainly due to the PC,PC business's third-quarter profit of 500 million yuan, margin 5.4%, in addition to the loss in the Brazilian market, Lenovo's personal computer business in the global market almost maintain a full growth.

In addition, Lenovo's old business and new business revenues rose 33% per cent, although the last quarter was the start of Lenovo's new business, excluding the extra costs of mergers and acquisitions. "Motorola's loss has not been a significant drag on Lenovo and the reason for Lenovo's overall business growth." Yang said Lenovo is expected to save Motorola 4.5 billion of dollars in raw material costs in the next quarter.

Yang believes that Motorola mobile phone gross profit is higher, mainly because of its high cost rate affects overall profits. "We will take advantage of Lenovo by increasing sales and controlling costs, including the reduction in the cost of raw materials, operations, manufacturing and logistics."

In addition, Motorola's return to China will enhance its high-end market over 2000 yuan. The Chinese market will help Motorola's global turnaround. "Lenovo executive vice president, Mobile Business Group (MBG) President Liu June said.

In addition, the new company to assume the transformation of Lenovo's Magic Factory, is also the formation of a new mobile phone brand for Lenovo's future mobile phone business continues to force.