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Lenovo Charges Up Investors by Playing Down Virus Impact

By Yang Ge / Feb 20, 2020 03:19 PM / Business & Tech

Photo: VCG

Photo: VCG

It’s great being global.

That’s the sentiment coming from PC giant Lenovo, which credited its global footprint that includes a major U.S. presence for helping to control disruptions related to the Covid-19 virus outbreak wreaking havoc in its home market.

Lenovo said Thursday the vast majority of its China factories have reopened and resumed operations on a “limited basis,” even as its suppliers and logistics partners continue to feel the impact of an outbreak that has killed more than 2,000. Like many other Chinese companies, Lenovo is just now getting back to work in its home market after an extended Lunar New Year holiday called by Beijing to limit the spread of the virus by curbing human-to-human contact.

“Given its extensive global footprint, the company is well positioned to address the supply challenges by leveraging its strength as a global company with worldwide manufacturing capabilities and supply chain efficiency,” it said.

It added it expects demand in its core China market to rebound after the outbreak stabilizes, and said “new demand drivers could emerge to bode well for the businesses.”

Lenovo gave the upbeat assessment as it reported its latest quarterly results, which showed that revenue was flat at $14.1 billion in the last three months of the year. Its bottom line looked better, with profit up 11% to $258 million.

Investors liked what they saw, bidding the company’s shares up 6.6% in afternoon trade shortly after the announcement.

Contact reporter Yang Ge (geyang@caixin.com)

Related: Lenovo Founder Warns of ‘Extremely Hard Fights’ Ahead


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