Tokyo, January 29, 2010
Fujitsu, a leading provider of IT-based business solutions for the global marketplace, today reported consolidated net income of 4.1 billion yen (US$45 million) for the third quarter of fiscal 2009 (October 1 – December 31, 2009), rebounding from a net loss in the previous year. Profitability improved in every business segment, and the semiconductor device business posted a profit for the first time in seven quarters.
Third-quarter operating income, which measures the profitability of ongoing business operations, totaled 33.6 billion yen (US$365 million) compared with a loss of 25.1 billion yen in the same period last year. The earnings of all the company’s business segments improved. Income from the Device Solutions semiconductor business, which includes logic LSI products and electronic components, totaled 2.9 billion yen (US$32 million), compared with a loss of 21.1 billion yen in the third quarter of 2008. In the Ubiquitous Product Solutions business, which includes PCs and mobile phones, operating income totaled 11.6 billion yen (US$126 million) compared with a loss of 11.5 billion yen last year. Technology Solutions, which includes the IT services and system platforms businesses, posted operating income of 28.2 billion yen (US$307 million), up from income of 20.2 billion yen last year. Income for the system platforms business alone totaled 6.9 billion yen (US$75 million), a turnaround from a loss of 4.0 billion yen in the previous year.
“I’m pleased to report that profitability continues to improve in all our business areas, and we’re on track to meet our earnings targets for fiscal 2009,” said Michiyoshi Mazuka, chairman and president of Fujitsu Limited. “We continue to transform the Fujitsu Group by focusing on the needs of our customer’s customers, expanding business in markets outside Japan, and protecting the environment through innovative technology solutions. This strategy has positioned us for greater growth in the future.”
Consolidated net sales for the period were 1,146.7 billion yen (US$12,464 million), an increase of 8.8%. On an adjusted basis, excluding the impact of converting Fujitsu Technology Solutions (Holding) B.V. into a consolidated subsidiary, the sale of the hard disk drive business and other factors, sales were roughly even with last year.
On a geographic basis, sales in Japan declined 2.5%. Mobile phone sales rose strongly, but sales of core system integration and solutions services declined due to corporate spending cutbacks. Outside Japan, sales rose 33.6% when including the sales of Fujitsu Technology Solutions and increased 6% on an adjusted basis due to recovering demand for electronic components, growing sales of optical transmission systems in North America, and other factors.
For the first nine months of fiscal 2009 (April 1 – December 31, 2009), the company posted net income of 47.3 billion yen (US$514 million), which included one-time gains from stock sales, and operating income of 15.3 billion yen (US$166 million), on net sales of 3,333.4 billion yen (US$36,233 million), a decline of 5.0% compared with the same period in fiscal 2008.
Third-Quarter Business Segment Results
Third-quarter net sales in the Technology Solutions segment totaled 745.9 billion yen (US$8,108 million), increasing 8.9% compared to the same period in fiscal 2008. Net sales in the services sub-segment were 593.2 billion yen (US$6,448 million), up 8.9% from the same period a year earlier. Sales of outsourcing sales in Japan continued to be steady. Outside Japan, though IT services demand has yet to recover in Europe, acquisitions bolstered services sales in Oceania. In the system platforms sub-segment, sales were 152.7 billion yen (US$1,660 million), an increase of 8.9%. Sales declined in Japan but rose 17% outside Japan on rebounding demand for optical transmission systems and UNIX servers.
Net sales in the Ubiquitous Product Solutions segment were 218.9 billion yen (US$2,379 million), an increase of 6.3% compared to the same period in fiscal 2008. In Japan, sales of mobile phones grew strongly thanks to the expansion of the product lineup. PC sales were flat in Japan and declined outside Japan due to fierce price competition and corporate spending cutbacks.
Net sales in the Device Solutions segment were 141.1 billion yen (US$1,534 million), roughly unchanged from the same period in fiscal 2008. Sales of logic LSI product continued to improve on a quarter-to-quarter basis, and electronic component sales increased versus the same period last year.
Fiscal 2009 Full-Year Consolidated Earnings Projections
The company’s current earnings projections for fiscal 2009 are presented below.
| (billion yen) |
| | FY 2008
(Actual)
| FY 2009
(Forecast)
| Change |
| Net Sales | 4,692.9 | 4,750.0 | 57.0 |
| Operating Income | 68.7 | 90.0 | 21.2 |
| Net Income | -112.3 | 95.0 | 207.3 |
Complete information on Fujitsu’s 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 = 92 yen, the approximate closing rate on December 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
