, the world’s fourth largest PC manufacturer, is making a profit despite a slowing global economy.

The Morrisville-based firm reported a second quarter profit of $110 million on Thursday, some $3 million more than projected by four stock analysts polled by Reuters. The total is also 65 percent higher than the second quarter in 2007. The news came just ahead of the Olympics in Beijing where Lenovo is one of the major sponsors. Lenovo is also providing much of the technology infrastructure for the Games.

The profit is equal to 1.25 cents per share.

Quarterly sales, meanwhile, increased to $4.2 billion, a 10 percent jump from 2007.

Lenovo stock trades on the Hong Kong stock exchange under the symbol 0992.

However, the growth was the slowest in a year, Reuters noted.

Lenovo holds some 7.9 percent of the world market share. It did increase PC shipments by 14.6 percent in the quarter, the company added.

“Despite a softening global economy, we delivered solid gains in worldwide sales, PC shipments and profits, achieving our seventh consecutive quarter of profitable growth with positive operating results in our international business,” said Chairman Yang Yuanqing in a statement.
“Looking forward, we will invest even greater effort and resources into the development of emerging markets and our consumer business, and ensure an effective execution of our strategies,” he added.

Lenovo has said it will pursue acquisitions as a possible means of growth. The PC maker also launched a major initiative to increase sales to consumers and small businesses worldwide. Those efforts include new laptop and desktop PCs.

Sales in China produced $1.7 billion of Lenovo’s sales, an increase of 22 percent from a year earlier even though that country was wracked by a devastating earthquake as well as widespread flooding.

Lenovo also increased sales in the Americas to $1.1 billion, a 26 percent jump.

Europe-Middle East-Africa sales improved 21 percent to $904 million.
Asian sales outside of China increased as well, climbing 11 percent to $497 million.

Lenovo’s hottest sellers are laptops – $2.4 billion, up 33 percent, or 57 percent of total revenues.

Desktop sales rose slightly to $1.7 billion, up 3 percent.