Fujitsu today reported a consolidated net loss of 72.9 billion yen (US$776 million) for the full year of fiscal 2012, a year-on-year deterioration of 115.6 billion yen, primarily as a result of extraordinary loss stemming from the LSI device business. This was 22.0 billion yen less than the Company's consolidated projections announced in February 2013.
Full-year consolidated net sales totaled 4,381.7 billion yen (US$46,614 million), a year-on-year decline of 1.9%. Sales in Japan fell by 2.6% primarily as a result of a decline in sales of hardware such as PCs, mobile phones, LSI devices and electronic components. Sales outside of Japan were essentially unchanged from the previous fiscal year.
Gross profit was 1,203.7 billion yen, down 31.6 billion yen from fiscal 2011, attributable to lower sales of PCs, mobile phones and LSI devices. Selling, general and administrative expenses were 1,108.4 billion yen, a decline of 21.6 billion yen from fiscal 2011 resulting from efforts across the Group to generate cost efficiencies. As a result, operating income was 95.2 billion yen (US$1,013 million), a decline of 10.0 billion yen from the previous fiscal year.
In other income and expenses, Fujitsu recorded a loss of 140.3 billion yen, representing a deterioration of 101.8 billion yen from fiscal 2011.
The loss of 140.3 billion yen includes 116.2 billion yen in restructuring expenses stemming from 90.3 billion yen for the LSI business, 20.0 billion yen for business outside Japan, and 5.8 billion yen for others. Restructuring expenses for the LSI devices business consist of losses mainly relating to the transfer of production facilities and expenses related to personnel rationalization. The restructuring expenses for business outside Japan consist of personnel-related expenses, primarily for the European subsidiary Fujitsu Technology Solutions (Holding) B.V. (FTS). Other restructuring expenses include the losses mainly on personnel-related rationalization expenses at managerial levels.
Fujitsu also posted an impairment loss of 34.2 billion yen mainly on the unamortized balance of the goodwill recorded at the time of acquisition of FTS.
"In the fourth quarter we saw solid performance in Technology Solutions both in and outside Japan. On the other hand, the device business and Ubiquitous Solutions have deteriorated significantly. As a result, we were unable to meet the operating income target revised at the end of the second quarter," commented Fujitsu's President Masami Yamamoto. "In order to achieve stable profit, we are shifting resources into growth fields under the structural reform measures announced in February 2013. In fiscal 2015, Fujitsu aims to generate operating income of at least 200.0 billion yen, net income of 100.0 billion yen or above, and free cash flow of at least 100.0 billion yen."
Consolidated net sales in the Technology Solutions segment amounted to 2,942.3 billion yen (US$31,301 million), essentially unchanged from fiscal 2011. Sales in Japan increased 1.2%. Sales of network products, including mobile phone base stations and routers, increased due to higher spending by telecommunications carriers to handle larger volumes of communications traffic and to expand LTE coverage. A recovery in spending, primarily in the manufacturing and public sectors also contributed to higher sales in system integration services. Sales of infrastructure services also rose on steady growth of outsourcing services, in addition to higher demand related to network services. Sales outside Japan declined 1.6%. Sales of optical transmission systems in the first half of this fiscal year declined due to a shift toward spending on wireless networks by North American telecommunications carriers. The segment posted operating income of 180.9 billion yen (US$1,924 million), up 9.6 billion yen compared to fiscal 2011.
Net sales in the Ubiquitous Solutions segment were 1,090.2 billion yen (US$11,598 million), a decline of 5.5% from fiscal 2011. Sales in Japan were down by 7.0%. In spite of large-volumes orders received from corporations, sales of PCs declined on sluggish sales of consumer PCs and lower sales prices. In mobile phones, sales of smart phones stagnated as a result of the intensifying competition with global vendors. Sales outside Japan fell 0.8%. The segment posted operating income of 9.6 billion yen (US$102 million), down 10.3 billion yen from fiscal 2011.
Net sales in Device Solutions amounted to 540.3 billion yen (US$5,748 million), a decline of 7.6% compared to fiscal 2011. Sales in Japan fell 13.7%. LSI device sales decreased due to delayed market recovery, particularly for digital audio-visual equipment. Sales of electronic components, particularly batteries and semiconductor packages, also fell. Sales outside Japan increased 1.1%. The segment recorded an operating loss of 14.2 billion yen (US$151 million), representing a deterioration of 4.0 billion yen from fiscal 2011.
Fujitsu has made its full-year financial projections for fiscal 2013, as presented below.
|Net Income (loss)||-72.9||45.0||117.9|
For fiscal 2013, the Company plans to not distribute an interim dividend. A decision has not been made regarding the distribution of a year-end dividend.
* Yen figures have been converted to U.S. dollars, for convenience only, at a uniform rate of US$1 = 94 yen, the approximate closing rate on March 31, 2013.
Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 170,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.4 trillion yen (US$47 billion) for the fiscal year ended March 31, 2013. For more information, please see http://www.fujitsu.com.
All company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.
This press release has been revised as of December 17, 2018.
Date: 30 April, 2013
Company: Fujitsu Limited, , , , , , , , , ,
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