Tokyo, April 30, 2010
Fujitsu Limited, a leading provider of ICT-based business solutions for the global marketplace, today reported consolidated net income of 93.0 billion yen (US$1.0 billion*) for fiscal 2009 (April 1, 2009 – March 31, 2010), a turnaround from the previous year's net loss, as the company made progress in its business reforms and recorded one-time gains on sales of stockholdings.
Net sales for fiscal 2009 were 4,679.5 billion yen (US$50,317 million), roughly the same as fiscal 2008. Operating income surged 37.2% to 94.3 billion yen (US$1,014 million), driven by improved efficiency across the company, particularly in the LSI device and electronics component businesses.
Annual profits exceeded initial targets, and the company announced an increase in year-end dividends to 5 yen a share, 2 yen more than the forecast as the start of the fiscal year.
"We made excellent progress towards our goal of transforming Fujitsu into a truly global enterprise geared for profitability," said Masami Yamamoto, who became president of Fujitsu Limited on April 1. "Even as we improve efficiency, we are making strategic investments around the world in cloud computing platforms and other key areas to support the success of our customers and drive our future growth."
Fujitsu embarked on a major expansion in Europe during the year by acquiring Siemens AG's stake in joint-venture Fujitsu Siemens Computers (Holding) B.V. (renamed Fujitsu Technology Solutions (Holding) B.V.), which increased its sales in the Europe, Middle East, and Africa (EMEA) region by about 60%. Sales in other regions—the Americas, Asia-Pacific and China, and Japan—declined versus fiscal 2008, particularly in the first half of the year amid the lingering economic recession. Overall, factoring in the European acquisition, sales outside Japan rose 8.6% to 1,774.9 billion yen (US$19,085 million).
In Japan, sales declined 10.3% versus fiscal 2008 to 3,400.5 billion yen (US$36,565 million). In the services business, outsourcing sales increased steadily, but hardware-related solutions to manufacturers, retailers/distributors, and financial services companies declined. During the year, Fujitsu successfully completed the development of the Tokyo Stock Exchange's new equities trading system, widely considered the year's most significant systems integration project in Japan. In the products area, mobile phones sales rose strongly.
Business Segment Results
Consolidated net sales in the Technology Solutions segment, which includes the System Platforms and Services sub-segments, increased 1.4% to 3,121.0 billion yen (US$33,559 million) due to the consolidation of Fujitsu Technology Solutions, while operating income declined 19.2% to 152.4 billion yen. Net sales in the Services sub-segment were 2,510.4 billion yen (US$26,994 million), up 3.4% from the prior year. Sales of outsourcing services increased in Japan, though solutions and system integration services sales declined. Outside Japan, the economic recession impacted services sales, particularly in Europe. Net sales in the System Platforms sub-segment for fiscal 2009 were 610.6 billion yen (US$6,566 million), a decline of 6.0%. In Japan, sales of server-related products were impacted by corporate spending cutbacks, while outside Japan, server and network products sales began to recover in the second half of the year.
Net sales in the Ubiquitous Product Solutions segment were 918.7 billion yen (US$9,878 million), a decrease of 3.2% compared to fiscal 2008, while operating income surged to 22.9 billion yen (US$246 million) from 0.5 billion yen the year before. Sales in Japan decreased by 6%. Mobile phone sales grew, though PC revenue declined due to intensified price competition even as shipments increased. Sales outside Japan increased by 3.3% from the consolidation of Fujitsu Technology Solutions.
Net sales in the Device Solutions segment were 547.2 billion yen (US$5,884 million), a decrease of 6.9% compared to fiscal 2008. Sales of logic LSI devices declined for the year, but continued to recover on a quarter-to-quarter basis. The segment posted an operating loss of 8.7 billion yen (US$94 million), a significant improvement over the 71.9 billion yen loss the previous year. The business turned profitable in the last two quarters of the year as business restructuring reduced fixed costs.
Fiscal 2010 Consolidated Projections
For fiscal 2010 (April 1, 2010 – March 31, 2011), Fujitsu is projecting consolidated net sales of 4,800.0 billion yen, an increase in operating income to 185.0 billion yen, and net income of 95.0 billion yen.
| (billion yen) |
| |
FY2009
(Actual)
|
FY 2010
(Forecast)
|
Change
|
| Net Sales |
4,679.5 |
4,800.0 |
120.4 |
| Operating Income |
94.3 |
185.0 |
90.6 |
| Net Income |
93.0 |
95.0 |
1.9 |
Complete information on Fujitsu's fiscal 2009 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 = 93 yen, the approximate closing rate on March 31, 2010.
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
