/>
X
Business

Lenovo bounces back in Brazil

The manufacturer starts to recover after selling local firm CCE and reducing spend.
angelica-mari-author.jpg
Written by Angelica Mari, Contributing Writer on

Lenovo has started to show an improvement in its Brazilian business after some years of hardship in the country.

The company has posted 1,3 percent growth in net profit, reaching R$1,5 billion ($480 million). Administrative and commercial spending has decreased by 41,4 percent to R$242,8 million ($77,7 million), while other expenses shrunk by 75,2 percent to R$93,7 million ($29,9 million).

By comparison, Lenovo had posted a 82,6 percent slump in net profit last year, with operational losses reaching R$ 1,16 billion ($371 million).

The Chinese company ranks third in PC sales in Brazil, behind HP and Dell, with a 13 percent market share.

Back in 2012, the firm tried to increase its footprint in the Brazilian market by buying local manufacturer CCE, but sold the company back to its original owners in 2015.

Last year, Lenovo reorganized its operations in Brazil as part of a cost-cutting strategy. It swapped a manufacturing facility of 52,000 square meters for a facility that is half the size and reduced the workforce of originally 5000 staff down to 800 employees.

The company also hired a new head for Brazil earlier this year and announced that it would strengthen its channel presence in Brazil, with specific focus in servers and datacenter equipment.

Editorial standards

Related

How to use your phone to diagnose your car's 'check engine' light
BlueDriver Bluetooth dongle

How to use your phone to diagnose your car's 'check engine' light

Elon Musk drops details about Tesla's humanoid robot
tesla-humanoid

Elon Musk drops details about Tesla's humanoid robot

For $2, you can finally give your Mac an incredibly useful feature Windows has always had
cleanshot-2022-08-16-at-22-34-232x

For $2, you can finally give your Mac an incredibly useful feature Windows has always had