Fujitsu today reported the profit for the period attributable to owners of the parent, including the discontinued operations of FUJITSU TEN LIMITED, as 2.1 billion yen, representing an improvement of 16.2 billion yen compared to the first quarter of fiscal 2016.
Consolidated revenue for the first quarter of fiscal 2017 was 922.6 billion yen, up 22.6 billion yen from the first quarter of fiscal 2016. Revenue in Japan rose by 5.4%. Apart from the impact of an approximately 13.0 billion yen decrease in revenue due to the exclusion of Nifty's consumer ISP business in Fujitsu's consolidated results, revenue in Japan from the Services sub-segment increased. Revenue from network products, PCs, mobile phones, and LSI devices also all increased. Excluding the impact of the Nifty reorganization, revenue from all three of Fujitsu's reportable segments rose. Outside of Japan, revenue fell by 2.0%. In addition to a decrease in revenue from the Services sub-segment resulting from a decline in the value of the British pound against the yen, revenue from electronic components also decreased. The ratio of revenue outside Japan was 37.3%, a decrease of 1.7 percentage points compared to the same period of the previous fiscal year.
Fujitsu recorded an operating profit of 4.9 billion yen, an improvement of 18.6 billion yen from the first quarter of fiscal 2016. Contributing factors include the impact of two special one-time circumstances, namely, the approximately 16.0 billion yen net gain on the sale of assets from Nifty's consumer ISP business and others and a deterioration factor of approximately 7.0 billion yen associated with the result of a legal dispute at an overseas subsidiary. Excluding the impact from these factors, operating profit improved due to higher revenue in the network products of mobile phone base stations in Japan, PCs, mobile phones, and LSI devices as well as a result of not having the cost burden, incurred in last fiscal year's first quarter, of mandatory inspections of LSI device manufacturing facilities.
Profit for the period before income taxes from continuing operations was 7.4 billion yen, an improvement of 22.9 billion yen from the same period in fiscal 2016. In addition to improved operating profit, this was attributable to a reduction in the burden of financial expenses. In the first quarter of fiscal 2016, a foreign exchange loss of approximately 5.0 billion yen was recorded due to the sudden rise in the value of the yen.
On April 28, 2017, Fujitsu reached an agreement with DENSO Corporation to sell DENSO a portion of the shares it holds in FUJITSU TEN. Accordingly, from the first quarter of 2017, FUJITSU TEN is classified under "discontinued operations." The profit or loss from discontinued operations is presented separately from the figures for continuing operations as "Profit for the Period/Year from Discontinued Operations," and actual results from the previous fiscal year are presented in the same format.
Fiscal 2017 Consolidated Projections
Projections for Fiscal 2017 remain unchanged. The Company forecasts revenue of 4,100.0 billion yen. The forecast for operating profit is 185.0 billion, and forecast for profit for the year attributable to the owners of the parent is 145.0 billion yen. Also there has been no change in forecasts for any of the segments.
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