Lenovo Q3 earnings look good, but not below the surface

Two years after the acquisition, the IBM Personal Computer Division is still dragging down the Lenovo group, say analysts.

ChinaÆs leading multinational, Lenovo Group, saw profits jump 23% for the three months ending December 2006. Net income rose to $57.7 million, from $47 million a year earlier. Sales rose to $4 billion from $3.98 billion.

However, some analysts say the results were skewed by an unusually low tax rate and the decision to reduce the amount of funds laid aside for repairs made under warranty.

ôThe tax they paid in the third quarter was only 9.5% percent. The company...

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