The Channel logo

News

By | Paul Kunert 26th October 2011 14:01

Fujitsu foresees gloom, blames exchange rates

Weak biz spending, yen and components

Operating profits at Fujitsu slid by a little more than third in Q2 due to weakness at its device unit, slow Japanese biz spending and unfavourable forex conversions.

The Japanese IT conglomerate recorded a 35 per cent drop in operating profits to 24.1bn yen (£198.6m) – ahead of its expectations – in the quarter ended September but sales edged up 0.6 per cent to 1.1 trillion yen (£9.1bn).

“I am pleased that we were able to beat our profit targets despite a challenging business environment after the devastating earthquake in Japan,” said president Masami Yamamoto.

Sales at the Technology Solutions (TS) unit fell 1.2 per cent to 726.2bn yen (£5.9bn) and operating profits fell 9 per cent to 43.1bn yen (£355m). The declines were attributed to slowing demand for systems/ integration services in Japan.

Outside of its homeland territory, TS sales were flat but excluding the impact of exchange rate fluctuations they were up 5 per cent and operating income grew "due to improved performance in European sales of infrastructure services".

Ubiquitous Solutions – the PC, mobile phone and mobilewear unit – went up 6.1 per cent to 280bn yen (£2.3bn) on a wave of a consumer refreshes in Japan although enterprise spending in the country was sluggish. Operating profit was flat.

The LSI and electronic components unit – Device Solutions – recorded operating losses of 3.8m yen (£31m) as sales declined more than 8 per cent to 147.5bn yen (£1.2bn).

“We are now faced with an array of new risks – from the dramatically appreciating yen and turmoil in capital markets as a consequence of financial issues in the United States and European countries, to a deceleration of growth in emerging markets," said boss Yamamoto.

Fujitsu said full-year profit expectations remain unchanged but has reduced sales forecasts by 60bn yen (£49m) "in light of anticipated exchange rates", it said. ®

alert Send corrections

Opinion

frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up
Internet of Things

Gavin Clarke

This time, Larry's Oracle is going after the networking giants

Features

No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever
Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club