Tokyo, April 26, 2001 --- Fujitsu Limited, the global leader in Internet-focused information technology solutions, today reported consolidated net sales of 5.48 trillion yen for fiscal year 2000 (April 1, 2000 to March 31, 2001), an increase of 4% over the previous fiscal year. Converted into US dollars(*), this represents approximately $44.2 billion.
The overall business environment started the fiscal year out favorably, marked by continued expansion in the US and Europe and a modest recovery in Japan supported by corporate IT investment and rising consumer demand for digital home electronics and personal computers. However, conditions took a rapid turn for the worse in the second half, with precipitous cutbacks in capital investment and inventory adjustments first becoming evident among corporations in the US and subsequently spreading to Europe and Japan.
Thanks to dramatically improved profitability in the electronic devices sector resulting from timely restructuring of Fujitsu's semiconductor operations, as well as successful group-wide efforts to control operating expenses, consolidated operating income increased to 244.0 billion yen (US$1.97 billion), or 63% higher than the previous fiscal year. However, on account of expenses arising from continuing business restructuring efforts and an extraordinary loss accompanying the realignment of US subsidiary Amdahl Corporation's business structure, consolidated net income was 8.5 billion yen (US$69 million), an 80% decline from the previous fiscal year.
Services & Software
Continued growth in Internet usage in Japan helped drive solid growth in domestic sales of systems integration and outsourcing services. However, growth in overall domestic services & software sales was largely offset by sales declines in the company's US and European services operations, due to restraints on corporate IT investment in those markets. Overall, consolidated sales of services & software were 2.02 trillion yen (US$16.3 billion), a 2% increase from the previous fiscal year.
Information Processing
In Japan, sales of UNIX servers and personal computers for individual consumers increased, however, sluggish demand for global servers (mainframes) resulted in a modest decrease in domestic information processing sales. Overseas sales in the sector also declined, due in part to falling demand in the US and Europe during the second half for small form factor hard disk drives for desktop personal computers. In addition, computer sales in Europe showed a decline in comparison with the previous fiscal year as a result of the fact that sales of Fujitsu Siemens Computers were subject to the equity accounting method for all of fiscal 2000, whereas in the first half of the previous fiscal year the sales of Fujitsu's former European computer manufacturing and sales company were included in consolidated accounts.
Due to these factors, consolidated information processing sales for fiscal 2000 declined by 7% to 1.50 trillion yen (US$12.1 billion).
Telecommunications
Fujitsu enjoyed robust first-half sales of optical transport systems in North America amidst continued moves to increase network speed and capacity, however, growth lagged in the second half due to carriers' cutbacks in capital investment.
In Japan, full-fledged shipments of switching and base station systems for upcoming IMT-2000 next-generation mobile communications service as well as growing demand for mobile handsets able to accommodate new types of i-mode services, helped contribute to an increase in domestic telecommunications sales. Consolidated telecommunications sales overall grew by 10% to 850.0 billion yen (US$6.9 billion). In a move that bodes well for the future, Fujitsu also commenced commercial shipments in North America of its industry-leading 1.76 terabit DWDM optical transport system.
Electronic Devices
Although sales of electronic devices dropped off sharply from January along with the deceleration of the US economy and resulting inventory adjustments, prior to that Fujitsu was able to take advantage of the rapid increase in demand for flash memory for mobile telephones and digital home electronics, as well as for logic ICs and for compound semiconductors used in optical transmission systems. As a result, consolidated sales of electronic devices for fiscal 2000 were 759.7 billion yen (US$6.1 billion), an increase of 34% over the previous fiscal year.
Fujitsu's financial results reflect the performance of 517 consolidated subsidiaries (493 in FY1999), including ICL PLC, Amdahl Corporation, Fujitsu America, Inc., Fujitsu Microelectronics, Inc. and Fujitsu Network Communications, Inc., as well as 28 affiliates (25 in FY1999), including Fanuc Ltd., Advantest Corporation and Fujitsu Siemens Computers (Holding) B.V., using the applied equity method.
- * Note:
- All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of US$1 = 124 yen, the closing exchange rate on March 31, 2001. The rate used for the previous fiscal year earnings announcement (FY1999) was US$1 = 106 yen.
Projections for Fiscal Year 2001
The IT industry has a central role to play in the future development of the Network Society, and as such, can expect among the highest growth rates of any sector in the mid to long term. However, in fiscal 2001 it is anticipated that the severe conditions surrounding the global economic slowdown and related restraints on corporate capital investment and moves to adjust inventories will continue. Taking all these factors into consideration, Fujitsu makes the following projections at this time
Fujitsu Limited Consolidated Earnings Forecast
for First Half and Full Year FY2001
|
1HFY2001 (4/1/01-9/30/01) |
FY2001 (4/1/01-3/31/02) |
|
Billion yen | Change | Billion Yen | Change |
| Net Sales |
2,650 | 6% | 5,800 | 6% |
| Operating Income | 90 | -10% | 270 | 11% |
| Net Income | 0 |
| 50 | 487% |
|
About Fujitsu
Fujitsu is a leading provider of Internet-focused information technology solutions for the global marketplace. Its pace-setting technologies, best-in-class computing and telecommunications platforms, and worldwide corps of systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.48 trillion yen for the fiscal year ended March 31, 2001. Internet: http://www.fujitsu.com/