Fujitsu Reports FY1998 Half-Year Financial Results; Consolidated Sales Gain, Profits Down.TOKYO--(BUSINESS WIRE)--Oct. 23, 1998--
Summary of Consolidated Results
Yen Yen U.S. $
(millions) (millions) (millions)
---------------------- ---------- ---------
1st Half 1st Half 1st Half
FY1998 FY1997 Change % FY1997 FY1998
--------- ---------- -------- ---------- ---------
Net Sales Y2,413,301 Y2,262,718 + 7 Y4,985,382 $17,876
Operating Income 44,151 103,615 - 57 177,353 327
Income Before
Income Taxes 41,502 63,149 - 34 123,855 307
Net Income 8,367 15,350 - 45 5,587 62
Amounts Per Share
of Common Stock:
Basic Earnings Y4.5 Y8.3 Y3.0 $0.033
Cash Dividends Y5.0 Y5.0 Y10.0 $0.037
Common Stock
Issued: 1998/9/30 1,874,959 thousand shares
1997/9/30 1,860,609 thousand shares
1998/3/31 1,862,356 thousand shares
Net Sales by Product Area
Yen Yen U.S. $
(millions) (millions) (millions)
---------------------- ---------- --------
1st Half 1st Half 1st Half
FY1998 FY1997 Change % FY1997 FY1998
--------- ---------- -------- ---------- --------
Communications
Systems Y351,977 Y437,952 - 20 Y871,375 $2,607
Computers &
Information
Processing
Systems 1,685,858 1,443,906 + 17 3,330,600 12,488
Semiconductors &
Electronic
Components 285,345 289,798 - 2 597,317 2,114
Other Operations 90,121 91,062 - 1 186,090 678
TOTAL Y2,413,301 Y2,262,718 + 7 Y4,985,382 $17,876
Consolidated Subsidiaries 516 companies
Affiliates 36 companies
(using the applied equity method)
Note: all yen figures have been converted to U.S. dollars for
convenience only at a uniform rate of $1 = 135 yen.
Summary of Unconsolidated Results
Yen Yen U.S. $
(millions) (millions (millions)
---------------------- ---------- --------
1st Half 1st Half 1st Half
FY1998 FY1997 Change % FY1997 FY1998
--------- ---------- -------- ---------- --------
Net Sales Y1,418,818 Y1,524,610 - 7 Y3,229,084 $10,509
Operating Income 2,701 56,062 - 3 89,332 20
Income Before
Income Taxes 9,066 44,959 + 35 89,800 67
Net income 6,966 24,959 - 37 50,900 51
Amounts Per Share
of Common Stock:
Basic Earnings Y3.8 Y13.5 - 72 Y25.1 $0.028
Net Sales by Product Area
Yen Yen U.S. $
(millions) (millions) (millions)
---------------------- ---------- ---------
1st Half 1st Half 1st Half
FY1998 FY1997 Change % FY1997 FY1998
--------- ---------- -------- ---------- ---------
Communications
Systems Y252,706 Y352,465 - 28 Y696,111 $1,872
Computers &
Information
Processing
Systems 1,043,791 1,005,088 + 4 2,234,398 7,731
Semiconductors &
Electronic
Components 122,321 167,057 - 27 298,575 906
(Semiconductors) (111,481) (158,533) - 30 (282,245) (826)
TOTAL Y1,418,818 Y1,524,610 - 7 Y3,229,084 $10,509
Note: all yen figures have been converted to U.S. dollars for
convenience only at a uniform rate of $1 = 135 yen.
Projections for FY1998 (April 1, 1998 - March 31, 1999)
Consolidated Earnings Forecast
Yen
(billions) Change(%)
---------- ---------
Net Sales 5,400 + 8
Net Income 45 ---
Unconsolidated Earnings Forecast
Yen
(billions) Change(%)
---------- ---------
Net Sales 3,220 ---
Net Income 5 - 90
Fujitsu (company) Fujitsu - A Japanese elecronics corporation. Fujitsu owns ICL, Amdahl Corporation, and DMR. Home USA, Japan. Reports FY1998 Half-Year Financial Results - Consolidated Sales Gain, Profits Down - Fujitsu Limited today reported consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of 2,413.3 billion yen (US$17.8 billion(a)) for the first half of Fiscal Year 1998. Thanks to robust demand overseas for the company's computers and information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. systems as well as telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. systems, consolidated sales for the six-month period ending September September: see month. 30, 1998 were up nearly 7% over the same half-year period in 1997. However, due in large part to lower demand in Japan's telecommunications sector and depressed prices Depressed price In the context of stocks, stock whose market price is low in comparison to stocks in its sector. in the global market for IC memories, margins declined 1.4% compared to the first half of the previous fiscal year, and consolidated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. fell 57% to 44.1 billion yen ($327.0 million). Consolidated net income for the period was 8.3 billion yen ($61.9 million), representing a decline of 45% in comparison to the 15.3 billion yen recorded in the first half of FY1997. In communications systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. , restrained capital investment by telecommunications companies See telecom company. in Japan was partly offset by buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. overseas demand, particularly for infrastructure to handle the rapid growth in Internet-related business and data services in the U.S. market. Despite a 32% increase in overseas communications systems sales, consolidated sales in this area as a whole declined by 20% to 351.9 billion yen ($2.6 billion). Consolidated sales of computers and other information processing systems, on the other hand, rose by 17% to 1,685.8 billion yen ($12.5 billion). Software and services -- in particular systems integration and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. -- enjoyed robust growth both in Japan and overseas. The 56% growth in overseas sales in this category also reflected the full consolidation of Amdahl's healthy sales for the half-year period, as well as favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. results at ICL (International Computers Ltd., London) The former name of Fujitsu Services, the European-centered arm of the global Fujitsu Group and one of the leading IT services companies in Europe, the Middle East and Africa. . In addition, strong overseas demand for personal computers and small form factor hard disk drives also helped offset sluggish sales of domestic client-server systems Client-server system A computing system that is composed of two logical parts: a server, which provides services, and a client, which requests them. The two parts can run on separate machines on a network, allowing users to access powerful server resources owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the depressed economic situation in Japan. In semiconductors and electronic components, strong demand in the U.S. was not sufficient to fully counter the negative effects of severe conditions in the IC memory market arising from global oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies and severe price deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. . Overall consolidated sales for the sector declined by 2% to 285.3 billion yen ($2.1 billion). Due to the previously mentioned decline in net income, Fujitsu reported a 46% decrease in half-year consolidated net income per share to 4.5 yen ($0.03), down from 8.3 yen in the first half of FY 1997. Founded in 1935, Fujitsu Limited is a leading provider of information technology products and solutions for the global marketplace. Financial results reflect the performance of 516 consolidated subsidiaries (452 in first half FY1997), including ICL PLC, Amdahl (Amdahl Corporation, Sunnyvale, CA, www.amdahl.com) A computer manufacturer founded in 1970 by Dr. Gene Amdahl, chief architect of the IBM System/360. In 1975, Amdahl installed its first IBM-compatible mainframe, the 470/V6. Corp., Fujitsu America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. , Inc., Fujitsu Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. , Inc. and Fujitsu Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. Ltd., as well as 36 affiliates (35 in first half FY1997), including Fanuc Ltd. and Advantest Corporation, using the applied equity method. (a) Note: All yen figures have been converted to U.S. dollars for convenience only at a rate of $1=135 yen. Comparisons between fiscal half-year periods reflect conversion of yen amounts into dollars at this uniform rate. Net income per share is based on the weighted average number of shares of common stock outstanding during the respective periods. Projections for Fiscal Year 1998 Amidst a·midst prep. Variant of amid. [Middle English amiddes : amidde; see amid + -es, adverbial suffix; see -s3.] continuing advances in multimedia and networking, demand for information processing and communications systems, software and services is expanding globally, and IT remains an industry with especially strong growth potential. In order to offer superlative total IT solutions to customers around the globe, Fujitsu has been strengthening ties among its group companies throughout the world. Focusing on key group members Fujitsu Limited in Japan/Asia, ICL in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Amdahl in the U.S., the
Group is committed to leveraging its collective talents and resources
and maximizing synergies to expand business opportunities.In the second half of the current fiscal year, Fujitsu anticipates steady growth in its information processing business, particularly in software & services and personal computer-related areas. Increased demand is also foreseen fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. in overseas telecommunications markets, especially in the U.S. and Europe, although poor conditions in the domestic market are expected to depress de·press v. 1. To lower in spirits; deject. 2. To cause to drop or sink; lower. 3. To press down. 4. To lessen the activity or force of something. revenue in the communications systems segment overall. And continuing adverse conditions in the semiconductor market will negatively impact business in the electronic devices sector. Within this challenging environment, Fujitsu will continue to restructure its operations with the aim of improving growth and profitability. Acknowledging that volatility in global currency and stock markets makes accurate forecasting difficult, Fujitsu makes the following projections at this time regarding consolidated earnings for FY1998:
Fujitsu Limited Consolidated Earnings Forecast for
FY1998 (April 1, 1998 - March 31, 1999)
billion yen change
Net Sales 5,400 + 8%
Net Income 45 ---
(Notes for editors) Fujitsu Limited is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935 as a telephone equipment maker, the Fujitsu Group had consolidated revenues of $37.7 billion in the fiscal year ended March 31,1998. With over 500 group companies, including Amdahl and ICL, Fujitsu is one of the world's largest suppliers of computers and information systems solutions, telecommunications and semiconductor products, software and services. The Fujitsu Group has over 180,000 employees world-wide and operations in more than 100 countries. Homepage: http://www.fujitsu.co.jp/index-e.html |
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