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Fujitsu Q2 sales hit by weakness in Europe

Microscope contributor
By Billy MacInnes

The economic downturn, corporate spending constraints and price competition dented Fujitsu's second quarter sales of PCs and infrastructure services in Europe and delays in ICT investment in Europe and the US prompted a revision of its net sales projection for the full year.


The vendor's performance in its home market of Japan improved across all three business sectors - technology solutions, ubiquitous solutions and device solutions - but the strength of the yen affected sales in other markets.


As a result, Fujitsu reported a 3.7% decrease in net sales for the quarter ending 30 September to just over 1,100bn yen (£8.5bn). Net income was 17.4bn yen, well down on the previous year's 72.4bn yen figure which included "significant profits from the sale of investment securities. But operating income was nearly double the 2009 Q3 figure at 37.1bn yen.


The company said all three business segments posted increases in profitability in the second quarter although sales from ubiquitous solutions, which includes PCs, were down 5% outside Japan.


Net sales for the first half of the fiscal year were 32.5bn yen lower than projections but operating income was up over 12bn yen at 47.1bn yen and net income was also higher. Fujitsu said lower-than-expected sales of services outside Japan had been compensated by higher network products sales and group-wide efforts to lower costs and reduce expenses.


Fujtisu revised its net sales projection down from 4,800bn yen to 4,670bn yen for the year - "primarily to declines and delays in ICT investment in the United States and Europe along with the impact of yen appreciation" - but the operating income and net income figures were unchanged.


Masami Yamamoto, president of Fujitsu, said the improvement in the company's profitability would enable it to "make important strategic investments in global expansion and in new cloud computing services that will contribute to the success of our customers".

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