CIMdata PLM Industry Summary Online Archive
7 February 2013
Financial News
Fujitsu Reports Fiscal 2012 Third-Quarter Financial Results
Fujitsu today reported a consolidated net loss of 79.0 billion yen (US$908 million) for the third quarter of fiscal 2012, a year-on-year decline of 74.7 billion yen, primarily as a result of restructuring expenses stemming from the LSI device business.
Third-quarter consolidated net sales totaled 1,048.2 billion yen (US$12,048 million), a decline of 2.9% from the same period of fiscal 2011. Sales in Japan fell by 5.4%. Sales of infrastructure services and system integration services increased, but sales of PCs, mobile phones, car audio and navigation systems, and LSI devices declined. Sales outside Japan rose by 2%. Excluding the impact of foreign exchange movements, however, sales declined by 1%, primarily as a result of lower PC sales in Europe.
Gross profit was 271.7 billion yen, a decline of 10.1 billion yen from the third quarter of fiscal 2011, primarily as a result of intensified price competition in PCs and other volume-driven products. Selling, general and administrative expenses were 275.8 billion yen, a decline of 2.8 billion yen from the third quarter of fiscal 2011 resulting from efforts across the group to generate cost efficiencies. As a result, the operating loss was 4.1 billion yen (US$47 million), a deterioration of 7.3 billion yen from the previous fiscal year's third quarter.
In other income and expenses, Fujitsu recorded a loss of 80.4 billion yen. Other expenses of 59.1 billion yen in restructuring expenses, primarily stemming from the LSI device business, were also recorded. These consist of losses relating to the sales of facilities and impairment losses on fixed assets, namely facilities producing standard logic devices. In addition, Fujitsu recorded an impairment loss of 28.0 billion yen on the unamortized balance of the goodwill relating to Fujitsu Technology Solutions (Holding) B.V. recorded at the time of acquisition, as the initial business plan was recognized as impracticable in light of the deteriorating business environment in Europe.
In the fourth quarter, Fujitsu plans to incur additional restructuring expenses associated with structural business reforms, specifically with its semiconductor business and other businesses outside of Japan. As a result, Fujitsu has revised its full-year business projections for fiscal 2012 (please refer to Fiscal 2012 Consolidated Projections at the end of this release). In the company's unconsolidated business results for fiscal 2012, Fujitsu expects to post valuation losses on stocks related to subsidiaries, which will cause negative retained earnings as of the end of fiscal 2012. As such, the company regrets that it does not plan to pay a fiscal 2012 year-end dividend.
“Fujitsu's Technology Solutions business in Japan remains robust. However, Fujitsu's device business, its business outside Japan and PC business have deteriorated significantly from projections announced at the beginning of the fiscal year," commented Masami Yamamoto, President of Fujitsu Limited. “The full-fledged structural reform measures that we have announced today are intended to address the issues these businesses present, and will strive to bolster our ability to achieve profitable growth the next fiscal year and going forward."
For more information:
- FY 2012 Third-Quarter Financial Results
- Management Direction Presentation
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