Tokyo, April 30, 2009
Fujitsu Limited, a leading provider of IT-based business solutions for the global marketplace, today reported consolidated operating income of 68.7 billion yen (US$702 million*) for fiscal 2008 (April 1, 2008 – March 31, 2009), surpassing its target as a result of a 4.7% increase in Technology Solutions income.
Net sales for fiscal 2008 were 4,692.9 billion yen (US$47,888 million), a decrease of 12% compared to fiscal 2007. Excluding the impact of yen appreciation, net sales declined by 6%. As a result of business reform expenses and impairment losses, the company posted a net loss of 112.3 billion yen (US$1,147 million).
Consolidated operating income in the Technology Solutions segment was 188.7 billion yen, an 8.5 billion yen increase over fiscal 2007. The increase was largely due to higher sales of systems integration services and router equipment to telecom carriers in Japan, along with an expansion of the services business in Europe.
"We ended the fiscal year with strong performance in our IT services and platforms business, thanks to the ability of Fujitsu employees to respond to customers’ changing needs and deliver solutions that improve their competitiveness during these challenging times," said Kuniaki Nozoe, president of Fujitsu.
In Japan, net sales decreased by 10.4% to 3,789.9 billion yen (US$38,673 million). Net sales outside Japan fell 22.0% to 1,634.1 billion yen (US$16,675 million) but excluding the impact of yen appreciation, sales declined by 9%. Net sales in EMEA decreased 20.4% to 612.8 billion yen (US$6,254 million). Net sales in the Americas fell 22.3% to 365.2 billion yen (US$3,727 million). In APAC and China, net sales declined by 23.3% to 656.0 billion yen (US$6,694 million).
Business Segment Results
Consolidated net sales in the Technology Solutions segment, which includes the System Platforms and Services sub-segments, declined 6.0% to 3,077.0 billion yen (US$31,399 million). Sales in Japan increased by 1.2% due to higher sales of systems integration services, primarily to the public and financial services sectors. Sales outside Japan declined 18.8% in yen terms, but were essentially unchanged when excluding the impact of yen appreciation. Operating income for the segment was 188.7 billion yen (US$1,926 million), an increase of 8.5 billion over the same period last year, due to both higher sales and greater cost efficiencies in the systems integration business in Japan.
Net sales in the Ubiquitous Product Solutions segment were 949.1 billion yen (US$9,685 million), a decrease of 20.2% from fiscal 2007. Sales in Japan fell by 13.5%. Intensified price competition and weaker corporate demand led to a decline in HDD and PC sales, while mobile phone sales fell due to a longer upgrade cycle. Operating income for the segment fell to 0.5 billion yen (US$6 million), due to lower sales of mobile phones, and lower profitability in the PC and HDD businesses.
Net sales in the Device Solutions segment were 587.6 billion yen (US$5,997 million), a decrease of 26.2% compared to fiscal 2007. Sales in Japan declined by 28.6%, due to sharp declines in sales of logic LSI devices and electronic components. The segment posted an operating loss of 71.9 billion yen (US$734 million), down 90.2 billion yen, due to market deterioration and lower production line capacity utilization rates.
Fiscal 2009 Consolidated Projections
For fiscal 2009 (April 1, 2009 – March 31, 2010), Fujitsu is projecting consolidated net sales of 4,800.0 billion yen, an increase in operating income to 80.0 billion yen, and a swing to a net income of 20.0 billion yen.
| (billion yen)
Complete information on Fujitsu's fiscal 2008 financial results, including financial tables, explanation of results and supplementary information, may be found at: http://www.fujitsu.com/about/ir/
* All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of US$1 = 98 yen, the approximate closing rate on March 31, 2009.
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
- Changes in accounting policies