GTM-MQNC2Z4
Skip to main content
  1. Home >
  2. About Fujitsu >
  3. Resource Center >
  4. News >
  5. Press releases >
  6. 2007>
  7. Fujitsu Revises Fiscal 2007 First-Half and Full-Year Consolidated and Unconsolidated Financial Results Forecasts

Fujitsu Revises Fiscal 2007 First-Half and Full-Year Consolidated and Unconsolidated Financial Results Forecasts

Fujitsu Limited

Tokyo, July 26, 2007

Fujitsu Limited today revised its first-half and full-year consolidated and unconsolidated financial results forecasts for fiscal 2007 that were previously issued on April 26, 2007. Details are as follows.

1. Revised Financial Results Forecasts

(1) Consolidated

[First Half (April 1 – September 30, 2007)]
(Billion Yen)
Net Sales
Operating
Income
Net Income
(Loss)
Previous Forecast* (A) 2,450.0 20.0 0
Revised Forecast (B) 2,450.0 20.0 (20.0)
Increase or Decrease (B-A) - - - 20.0
Percentage of Increase or Decrease - - -
1H FY 2006 Results
(For six-month period ended Sep. 30, 2006)
2,362.3 50.6 14.8

* Previous forecast as of April 26, 2007

[Full Year (April 1, 2007 – March 31, 2008)]
(Billion Yen)
Net Sales
Operating
Income
Net Income
Previous Forecast* (A) 5,400.0 190.0 75.0
Revised Forecast (B) 5,400.0 195.0 65.0
Increase or Decrease (B-A) - 5.0 - 10.0
Percentage of Increase or Decrease - 2.6% - 13.3%
FY 2006 Results
(For fiscal year ended Mar. 31, 2007)
5,100.1 182.0 102.4

* Previous forecast as of April 26, 2007

(2) Unconsolidated

[First Half (April 1 – September 30, 2007)]
(Billion Yen)
Net Sales
Net Income
Previous Forecast* (A) 1,350.0 35.0
Revised Forecast (B) 1,350.0 20.0
Increase or Decrease (B-A) - - 15.0
Percentage of Increase or Decrease - - 42.9%
1H FY 2006 Results
(For six-month period ended Sep. 30, 2006)
1,329.4 12.8

* Previous forecast as of April 26, 2007

[Full Year (April 1, 2007 – March 31, 2008)]
(Billion Yen)
Net Sales
Net Income
Previous Forecast* (A) 3,000.0 80.0
Revised Forecast (B) 3,000.0 65.0
Increase or Decrease (B-A) - - 15.0
Percentage of Increase or Decrease - - 18.8%
FY 2006 Results
(For fiscal year ended Mar. 31, 2007)
2,869.2 249.2

* Previous forecast as of April 26, 2007

Note: Fujitsu does not provide a forecast of unconsolidated operating income.

2. Explanation of Revisions

The financial results forecasts announced on April 26, 2007 did not reflect the impact of the changes in accounting policies that were then in the process of being calculated. Having completed those calculations, Fujitsu is now revising its consolidated and unconsolidated financial results forecasts. Taking into consideration losses recorded in accordance with the change in accounting policies and other factors, in comparison with the previous forecasts of April 26, 2007, the consolidated first-half net income forecast has been revised downward by 20.0 billion yen; the consolidated full-year net income forecast has been revised downward by 10.0 billion yen; and the unconsolidated first-half and full-year net income forecasts have each been revised downward by 15.0 billion yen.

In addition, the consolidated full-year operating income forecast has been revised upward by 5.0 billion yen.

Changes in accounting policies:

  • Early adoption of the Accounting Standard for Measurement of Inventories (Accounting Standard Board of Japan Statement No. 9)
  • Changes in the method of depreciation for Property, Plant and Equipment, and, with respect to unconsolidated accounts, early adoption of the Accounting Standard for Lease Transactions (Accounting Standard Board of Japan Statement No. 13)
  • Change in the basis of revenue recognition
  • Change in classification of Amortization of Unrecognized Obligation for Retirement Benefits

For details regarding these changes in accounting policies and their impact on consolidated financial results, please see the Explanation of Financial Results section of the FY 2007 First-Quarter Financial Results announcement also issued today. Separately, with respect to the impact on unconsolidated financial results, in conjunction with the change in method of valuing inventories from the cost method to the lower of cost or net selling value method, the company is recording a valuation loss of 24.0 billion yen on inventories at the beginning of the first quarter. However, the other changes in accounting policies are expected to have negligible effect on unconsolidated earnings.

3. Source for Interim Dividend

A special settlement of accounts will take place for the mid-year period*, and it is planned that an interim dividend will be issued from retained earnings in conjunction with the recording of first-half unconsolidated net income. There is no change at this time in the planned amount of the dividend as announced in April, i.e., 3 yen per share at mid-year and 6 yen per share for the full fiscal year.

*Pursuant to a resolution passed at a meeting of the board of directors in May, the company's accumulated deficit recorded in its unconsolidated retained earnings at the end of the previous period was eliminated by the transfer of 240.4 billion yen in "other capital surplus" to "other retained earnings." In order for allocable funds to be sourced from first-half net income via retained earnings, a special settlement of accounts is required under Japanese Corporate Law.


Note: These materials may contain forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results may differ materially from those projected or implied in the forward-looking statements due to, without limitation, the following factors:

- General economic and market conditions in key markets (particularly in Japan, North America, Europe and Asia, including China)

- Rapid changes in the high-technology market (particularly semiconductors, PCs, etc.)

- Fluctuations in exchange rates or interest rates

- Fluctuations in capital markets

- Intensifying price competition

- Changes in market positioning due to competition in R&D

- Changes in the environment for the procurement of parts and components

- Changes in competitive relationships relating to collaborations, alliances and technical provisions

- Potential emergence of unprofitable projects

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that create infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.1 trillion yen (US$43.2 billion) for the fiscal year ended March 31, 2007. For more information, please see: www.fujitsu.com

Press Contacts

Public & Investor Relations
Inquiries

Company:Fujitsu Limited

Date: 26 July, 2007
City: Tokyo
Company: Fujitsu Limited, , , , ,