Fujitsu profits obscure impact of downturn

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Fujitsu profits obscure impact of downturn

Alex Scroxton

Japanese tech bellwether Fujitsu has booked Q2 net profit of 72.4bn Yen (£485m), up from 4.2bn Yen this time last year after selling off a swathe of investment securities.

Quarterly net sales dropped 10.5% year-on-year to 1,14tn Yen, although the figure was up 9% sequentially over Q1.

However, in spite of the improvement in overall profitability, the recessionary impact on the vendor's core IT solutions business was highlighted by a corresponding slump in operating profit over the last three months - down 42% to 18.9bn Yen - and heavy losses at its Fujitsu Microelectronics chip-building subsidiary.

The unit, established in 2008, has been caught up in the throes of a major restructuring plan at its LSI manufacturing divisions in the Far East, and is expected to cost its parent 20bn Yen this year.

Fujitsu also divested its loss-making hard drive business to Toshiba during the quarter in an attempt to keep the wolf from the door.

Fujitsu today maintained its profit forecasts for the year on the back of the sale; it hopes to bank net profit of 95bn Yen, returning to some semblance of normality after last year's 112bn Yen loss.

Its current fiscal year closes in March 2010.

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