Lenovo Warns of Potential Price Hikes; Shares Tumble
August 15 2019 - 7:34AM
Dow Jones News
By Yifan Wang
Lenovo Group Ltd. (0992.HK) said it may increase the retail
prices of its products to absorb U.S. tariffs. Shares fell to a
two-month low.
Retail prices of products such as personal computers and
smartphones "will be increased if tariffs increase," Yang Yuanqing,
Lenovo's Chief Executive, said in an earnings call. The cost of
manufacturing would increase even if the products were made in
another country, he said.
So far, the company has seen "negligible material impact" from
global trade tensions, the company said in a statement accompanying
its June quarter results.
Lenovo reported better-than-expected earnings for the first
quarter this morning, with net profit more than doubling and
revenue rising 5%.
Still, shares closed 6.0% lower at HK$5.64.
Write to Yifan Wang at yifan.wang@wsj.com
(END) Dow Jones Newswires
August 15, 2019 07:19 ET (11:19 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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