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Investing.com-- Lenovo Group (HK:0992) clocked a weaker fourth-quarter profit on Thursday as it spent more on its artificial intelligence offerings and on fortifying its supply chains against global trade disruptions.
But the company clocked a stronger top-line on improving device sales– especially in the personal computing market– while its AI offerings helped boost sales for its enterprise and infrastructure units.
Lenovo’s net profit attributable to shareholders slid 64% in the three months to March 31 to $90 million. Revenue rose 23% to $16.98 billion.
The fourth quarter also reflected some headwinds to the company from increased U.S. trade tariffs on China, where Lenovo manufactures a bulk of its products.
But Lenovo’s earnings for the year to March 31 were far more upbeat, as the company logged a steady recovery in device sales, and as its corporate offerings were also bolstered by AI. Increasing interest in AI saw more companies seeking AI and cloud infrastructure, which the company provides through its infrastructure and solutions units.
Lenovo’s annual revenue rose 23% to $69.08 billion, while its profit rose 37% to $1.38 billion.
The company declared a final dividend of HK30.5 cents per share. Looking ahead, the company said AI stood to boost both its device sales and its enterprise offerings.
Lenovo’s shares fell 2.1% in Hong Kong trade, tracking a 0.6% drop in the Hang Seng.