Translated by
2018/06/14 15:30:18

Financial performance of Fujitsu

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2018: Decline of revenue by 3.6% to 3.95 trillion yens

In 2018 financial year which end fell on March 31 of the 2019th calendar revenue of Fujitsu made 3.95 trillion yens (35.85 billion), having decreased by 3.6% of rather previous year. Recession is caused by expenses on the restructuring connected with sale of majority shares in computer and telephone divisions.

In structure of Fujitsu Technology Solutions which is engaged in services of system integration and sale of the IT equipment turnover in the amount of 3.12 trillion yens is recorded that for 2.3% exceeds an indicator of year prescription. Service revenue rose by 2.5%, having reached 2.66 trillion yens. In the direction of System Platforms (servers, storage systems, network equipment, etc.) sales in 459.9 billion yens took place (growth by 1.2% year on year). Sale of network devices sank for 9.3% to 186.4 billion yens.

Financial performance of Fujitsu
Financial performance of Fujitsu

The division of Ubiquitous Solutions in which sales of computers and mobile phones are considered showed decrease in revenue by 23.2% in 2018 to a fiscal year concerning the 2017th — to 509.9 billion yens. Recession happened owing to restructuring within which the consumer PC-business ceased Ubiquitous Solutions belongs, and telephone business was transformed after sale of a 70 percent share in it. Because of restructuring the company did not get 210 billion yens of annual incomes.

Revenue of semiconductor division (Device Solutions) was reduced by 13% in comparison year by year and made 487 billion yens.

In 2018 financial year of Fujitsu earned 104.5 billion yens of profit that is 38.3% more, than the previous year. Profit in Technology Solutions decreased by 0.8%, having been 187.9 billion yens. In Ubiquitous Solutions losses in the amount of 20.4 billion yens are registered. The profit of Device Solutions was equal to 4.5 billion yens, having reduced by 67% concerning 2017 reporting year.[1]

2017: Decline of revenue by 0.8% to 4.1 trillion yens

In 2017 financial year which came to the end on March 31 the 2018th calendar revenue of Fujitsu made 4.1 trillion yens that is 0.8% less, than the previous year. In the report for the previous (2016) the company pointed to revenue in the amount of 4.5 trillion yens, and now the amount is lowered to 4.13 trillion yens that is connected with an asset sale.

The net profit of Fujitsu increased by 91.4% and reached 169.3 billion yens. About 7 billion yens of this gain are received for the account of the termination of some transactions.

Financial performance of Fujitsu
Financial performance of Fujitsu

Because of sale of consumer business of Nifty subsidiary company the Japanese giant did not get 52 billion yens of revenue. Besides, considerable decrease in implementation of network products affected. Without restructuring turnover of Fujitsu increased thanks to the growing sales of computers and a low rate of yen which favorably was reflected in sales returns of services and the equipment.

In 2017 financial year revenue in division of Technology Solutions which specializes in services of system integration and sales of a broad spectrum of IT products made 3 trillion yens, having decreased by 2.4% of rather previous year. The most part of earnings (2.6 trillion yens) fell on service business.

In division of Ubiquitous Solutions in which sales returns of personal computers and mobile phones are considered turnover appeared to equal 663.9 billion yens, having increased by 3% concerning value of year prescription.

In structure of Device Solutions (semiconductor products and services, accumulators and other electronic components) sales at the level of 560 billion yens are registered that is 3% more concerning 2016 financial year.

Most of all Fujitsu still earns from the house market. In 2017 reporting year revenue made nearly 2.6 trillion yens against 1.5 trillion yens of foreign income there.[2]

2016: Sales reduction and profit increase thanks to cost reduction

In 2016 to a fiscal year of sale of Fujitsu reached 4.5 trillion yens ($39.4 billion) whereas they were measured in the 2015th by 4.7 trillion yens. The net profit of the company grew by 2% thanks to cost reduction, especially in telephone and computer business. At the same time revenue of the company decreased almost by 5%

For the 12-month reporting period closed on March 31, 2017 the net profit of Fujitsu was 88.4 billion yens ($774.6 million) against 86.7 billion yens arrived the previous year.

Revenue of Fujitsu decreased almost by 5% in 2016 financial year
Revenue of Fujitsu decreased almost by 5% in 2016 financial year

Raising of income happened after the termination of costs for restructuring. At the end of the 2015 calendar year the company announced selection of two businesses — on release of the PC and smartphones — in the independent companies for the purpose of increase in their efficiency and competitiveness. Based on computer division the Fujitsu Client Computing Limited company, and as for smartphones was created, Fujitsu Connected Technologies was engaged in them. Annual expenses of Fujitsu decreased more than ten times — to 0.6 billion yens.

Fujitsu follows from the report that annual revenues in division of Technology Solutions which specializes in services of system integration and sales wide a range of IT products were 3.1 trillion yens ($27.1 billion) that is 4.8% less concerning an indicator of year prescription. Sale of network equipment dropped by 3.6%, to 246.8 billion yens ($2.2 billion).

In division of Ubiquitous Solutions in which sales returns of personal computers and mobile phones are considered turnover decreased by 1.5% — approximately to 1 trillion yens ($8.8 billion).

In structure of Device Solutions (semiconductor products and services, accumulators and other electronic components) annual revenues in the amount of 544.3 billion yens ($4.8 billion) are recorded that is 10% less, than the previous year.[3]

2015: Revenue of $43 billion

In May, 2016 Fujitsu announced results of work in 2015 financial year. Revenues of the company appeared below own expectations because of adverse currency fluctuation and weak sales of network products.

According to the results of the period from April 1, 2015 to March 31 of the 2016th Fujitsu received revenue in the amount of 4.7 trillion yens ($43 billion) that is 0.3% less, than the previous year. The company predicted larger sales for 60.7 billion yens, but they were less because of an unprofitable currency exchange after profit earning abroad and also insufficiently high in comparison with the expected revenue in business on release of network equipment (made 256 billion yens/2.3 billion $, having decreased by 20% year on year). In 2015 financial year Fujitsu locked in net profit in the amount of 86.7 billion yens.

Results of year of Fujitsu: net losses and income are lower than expectations
Results of year of Fujitsu: net losses and income are lower than expectations

Operating profit was reduced by a third to 120.6 billion yens ($1.1 billion) that for 9.3 billion yens it is less, than the producer predicted. Here additional expenses on transformation of business outside Japan affected.

Finished the 12-month period closed on March 31, 2016, division of Technology Solutions (the range of IT products specializes in services of system integration and sales wide) with revenue in 3.3 trillion yens ($30.1 billion) that approximately corresponds to an indicator of year prescription.

Sales of computers and mobile phones were reduced by 8.2% to 651.3 billion yens ($6 billion). In division of Device Solutions (semiconductor products and services, accumulators and other electronic components) annual revenues in 603.9 billion yens ($5.5 billion) which are 1.4% more took place, than were in 2014 to a fiscal year.

2014: Currency fluctuations doubled profit

On April 30, 2015 Fujitsu published the annual financial report. Follows from it that revenue of the Japanese company in a year practically did not change, and net profit doubled in many respects thanks to rate fluctuation of currencies.

According to the results of 2014 financial year closed on March 31 the 2015th the consolidated sales of Fujitsu made 4.75 trillion yens ($39.8 billion) against 4.76 trillion yens the previous year. In Japan revenue of the company dropped by 3%, and outside this country it grew by 4.4%. The share of foreign markets in revenues of the producer increased by 1.8 percentage points and reached 39.6% in 2014 financial year that was promoted by a profitable currency exchange. So, reduction in cost of yen in relation to dollar and the British pound added about 120 billion yens ($1 billion) to annual revenues of Fujitsu.

Currency fluctuations helped Fujitsu to double profit

Fujitsu published the annual financial report which brought down stocks of the company

Operating profit for the same period rose by 21.3% to 178.6 billion yens ($1.5 billion). Net profit increased from 5.4 billion yens ($45.2 million) in 2013 financial year to 11.7 billion yens ($97.9 million) a year later.

According to the results of 2015 financial year which started on April 1 the 2015th Fujitsu expects 16 percent fall of operating profit to 150 billion yens ($1.26 billion) that there are less forecasts of analysts and company.

Experts consider that the expected recession of revenues of Fujitsu is connected with devaluation of euro and change of business accent of the company – from hardware business (mobile phones, computers, etc.) towards the software and services.

In 2015 financial year Fujitsu is going to write off at a loss 30 billion yens ($251 million) in connection with reforming of the model of business, the analyst of Nomura Holdings Masaya Yamasaki (Masaya Yamasaki) reported.

Nomura downgraded stocks of Fujitsu with Buy to Neutral, having explained it with expenses of the company on restructuring, decrease in profitability of hardware business and negative effect of depreciation of euro.

On April 30, 2015 against the background of the weak forecast the share value of Fujitsu fell by 18% that became the biggest recession for the company from the moment of its entry into the Tokyo exchange in 1974.[4]

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