Fujitsu reported a profit for the second quarter attributable to owners of the parent of 2.9 billion yen, representing a deterioration of 14.2 billion yen from the second quarter of fiscal 2014.
Consolidated revenue for the second quarter of fiscal 2015 was 1,176.2 billion yen, an increase of 4.6% compared to the second quarter of fiscal 2014. Revenue in Japan increased 3.2%. Although revenue from network products and PCs decreased, revenue from system integration services and mobile phones increased. Revenue outside of Japan rose 6.8%. Revenue from network products declined, but overall revenue outside of Japan rose, benefiting from foreign exchange movements. The decline in the value of the yen versus the US dollar served to increase revenue by approximately 35.0 billion yen compared to the second quarter of fiscal 2014. The ratio of revenue outside Japan was 40.8%, an increase of 0.8 of a percentage point compared to the same period in the prior fiscal year.
Fujitsu recorded an operating profit of 14.8 billion yen, down 10.0 billion yen from the second quarter of fiscal 2014. In addition to the impact of lower revenues from network products and PCs, there was the negative impact of higher procurement costs in Europe for US dollar-denominated components stemming from the weakening of the euro against the US dollar.
Net financial expenses were 3.5 billion yen, representing a deterioration of 9.4 billion yen from the same period in fiscal 2014, when the company recorded net gain on foreign exchange because of the sharp fall in the value of the yen.
As a result, the profit before income taxes was 13.6 billion yen, a decline of 18.5 billion yen from the second quarter of the previous fiscal year.
Profit for the period attributable to owners of the parent was 2.9 billion yen, down 14.2 billion yen from the second quarter of fiscal 2014. The company's tax burden was higher than the standard effective income tax rate, primarily because there was a review of the balance of deferred tax assets for a subsidiary in Japan that recorded deteriorated earnings.
