Contact: Yuri Momomoto (03)3215-5236 or 3213-4160FOR IMMEDIATE RELEASE
Tokyo, October 25, 1995 -- With strong domestic and overseas demand for semiconductors and other electronic devices as well as rapid growth in multimedia-related business areas bolstering results, Fujitsu Limited today reported consolidated net sales of 1,644.0 billion yen ($16,606 million) for the six-month period ending September 30, 1995. This represents an 11 percent increase over the 1,484.1 billion yen ($14,991 million) reported during the same six-month period in 1994. Increased sales combined with more effective use of management resources and carefully targeted investment led to major gains in profit- ability. The Company's consolidated net income for the half-year period soared by 441 percent to 30.6 billion yen ($309 million) from the 5.7 billion yen ($57 million) posted for the 1994 half-year period. Similarly, there was a half-year profit per share of 16.8 yen ($0.17), up 442 percent compared with the 3.1 yen ($0.03) per share profit reported in the comparable period in 1994. Strong sales increases over the comparable half-year period in 1994 were reported in each of Fujitsu's three major product areas: sales of communications systems increased by 17 percent; computer and information processing systems rose by 9 percent; and semiconductors and other electronic components were up 12 percent. Overseas consolidated sales, including local production as well as exports from Japan, increased by 9 percent over the same period in 1994. Headquartered in Tokyo, Fujitsu Limited is the world's second largest computer maker and an international leader in communications, semiconductors and other electronic components. Financial results reflect the performance of 426 consolidated subsidiaries (411 in the same 1994 half-year period), including ICL PLC, Fujitsu America, Inc., and Fujitsu Microelectronics, Inc., as well as 38 affiliates (37 in the same half-year period), including Fanuc Ltd., using the applied equity method. -------------------- * Note: All yen figures have been converted to U.S. dollars for convenience only at a rate of $1=99 yen. Comparisons between fiscal half-year periods reflect conversion of yen amounts into dollars at this uniform rate. Net income per share is based on the weighted average number of shares of common stock outstanding during the respective periods. Background on Half-Year Results Despite some positive signs from increased public investment and private consumption, the Japanese economy remained essentially flat during this period, with no movement toward a full-fledged recovery. Internationally, slower growth in the U.S. economy was offset by continued strong economic performance in Asia, while the European economy expanded modestly. In the communications and information industries, there was rapid growth in multimedia-related business. Domestically, demand for access network systems and mobile telephones was particularly strong, and demand for client/server systems, networks, personal computers, outsourcing and middleware also expanded significantly. Demand was also robust in semiconductors, particularly for memory products. Overseas, the company continued to benefit from buoyant demand for semiconductors, storage products and fiber optic transmission systems, especially in the U.S. In an effort to advance worldwide procurement of materials and components, Fujitsu expanded the role of its international procurement office, focusing on the U.S. and Asia. In addition,the company made aggressive overseas investments, moving to increase production capacity at its semiconductor manufacturing subsidiaries in the U.K. and the U.S., ramping up volume production of hard disk drives in Thailand and the Philippines, and establishing operations in Vietnam. Projections for Fiscal 1995 Although the appreciation of the yen has slowed and public investment in Japan is expected to increase as a result of recently approved supplementary budget measures, it is still difficult to predict when full-scale economic recovery will occur. And with the U.S. economy showing signs of a slowdown, the overall economic picture is unclear. Nevertheless, the Fujitsu Group is responding quickly to increased industry competition and downward pressure on pricing, and is aggressively working to expand business opportunities. In this regard, the Fujitsu Group will strive to augment its profit- oriented structure by further promoting globalization, reorganizing its domestic and overseas production organization, developing high value-added products, and making carefully targeted investments. Based on these market conditions, the Company makes the following earnings projections for Fiscal Year 1995: Fujitsu Limited Consolidated Earnings Forecast for FY1995 (April 1, 1995 - March 31, 1996) (Increase Over Previous Fiscal Year) Net Sales 3,750.0 billion yen 15% Net Income 90.0 billion yen 100% Consolidated Statements of Income Yen Yen US$ (billions) (billions) (millions) 1H of 1H of 1H of FY1995 FY1994 Change FY1994 FY1995 Net sales Y 1,644.0 Y 1,484.1 + 11% Y3,257.7 $ 16,606 Operating costs and expenses: Cost of goods sold 1,071.1 959.8 + 12% 2,117.8 10,819 Selling, general and administrative expenses 488.5 465.4 + 5% 974.0 4,934 ------- -------- ------ ------- ------- 1,559.6 1,425.2 + 9% 3,091.8 15,753 ------- -------- ------ ------- ------- Operating income 84.4 58.9 + 43% 165.9 853 Other income (expenses): Interest and dividend income 5.7 6.7 - 16% 13.9 57 Interest charges (24.4) (28.3) - (55.5) (246) Other, net ( 5.8) (12.9) - (38.9) ( 59) ------- -------- ------ ------- ------- (24.5) (34.5) - (80.5) (248) ------- -------- ------ ------- ------- Income before income taxes 59.9 24.4 +145% 85.4 605 Income taxes 33.1 23.9 + 38% 50.4 334 Minority interests 2.4 (0.4) - 1.2 25 Equity in earnings of affiliated companies 6.2 4.8 + 31% 11.2 63 Net income Y 30.6 Y 5.7 +441% Y 45.0 $ 309 ------- -------- ------ ------- ------- Yen Yen US$ Net income per share Y 16.8 Y 3.1 Y 24.8 $ 0.170 Cash dividends per share 10.0 10.0 10.0 0.101 Consolidated Balance Sheets Yen US$ (billions) (millions) 1995/9/30 1995/3/31 1995/9/30 Assets Current assets: Cash and time deposits Y 348.4 Y 390.6 $ 3,519 Marketable and other securities 69.8 39.7 705 Receivables, trade 707.2 780.1 7,144 Inventories 781.1 623.9 7,890 Other current assets 199.1 183.1 2,011 -------- -------- --------- Total current assets 2,105.6 2,017.4 21,269 -------- -------- --------- Investments and long-term loans 597.6 590.5 6,037 Property, plant and equipment less accumulated depreciation 998.7 940.8 10,088 Other assets 164.3 165.1 1,659 ---------- --------- ---------- Y 3,866.2 Y 3,713.8 $ 39,053 ---------- --------- ---------- Liabilities and Shareholders' equity Current liabilities: Short-term borrowings and current portion of long-term debt Y 628.1 Y 571.3 $ 6,344 Payables, trade 477.9 440.1 4,828 Other current liabilities 485.6 477.0 4,905 -------- -------- -------- Total current liabilities 1,591.6 1,488.4 16,077 -------- -------- -------- Long-term liabilities: Long-term debt 720.5 713.7 7,278 Other long-term liabilities 271.8 262.4 2,745 -------- -------- -------- 992.3 976.1 10,023 Minority interests 146.0 149.0 1,475 Shareholders' equity: Common stock 237.5 223.6 2,400 Capital surplus 414.8 398.8 4,190 Legal reserve 25.0 24.1 252 Retained earnings 459.0 453.8 4,636 -------- --------- -------- Total shareholders' equity 1,136.3 1,100.3 11,478 -------- --------- -------- Y 3,866.2 Y 3,713.8 $ 39,053 -------------------------------- Consolidated Net Sales by Product Area Yen Yen US$ (billions) (billions) (millions) 1H of 1H of 1H of FY1995 FY1994 Change FY1994 FY1995 Communications Systems Domestic 205.1 168.8 + 22% 362.9 2,071 Overseas 68.0 63.7 + 7% 137.8 687 Total 273.1 232.5 + 17% 500.7 2,758 Computers and Information Processing Systems Domestic 768.4 699.4 + 10% 1,571.4 7,761 Overseas 282.2 260.5 + 8% 598.4 2,851 Total 1,050.6 959.9 + 9% 2,169.8 10,612 Semiconductors and Electronic Components Domestic 134.8 122.4 + 10% 246.7 1,362 Overseas 120.8 105.5 + 15% 213.6 1,220 Total 255.6 227.9 + 12% 460.3 2,582 Other Operations Domestic 53.3 51.4 + 4% 102.4 539 Overseas 11.4 12.4 - 8% 24.5 115 Total 64.7 63.8 + 1% 126.9 654 TOTAL Domestic 1,161.6 1,042.0 + 11% 2,283.4 11,733 Overseas 482.4 442.1 + 9% 974.3 4,873 Total 1,644.0 1,484.1 + 11% 3,257.7 16,606 -------------- Founded in 1935, Fujitsu Limited is the world's second largest computer manufacturer and an international leader in telecommunications, semiconductors and other electronic devices. The company offers a broad line of information processing systems, ranging from the world's fastest supercomputers to the smallest palmtop computers. The Fujitsu Group of technology, software, and service companies posted global revenues of more than $36 billion in the fiscal year ended March 31, 1995.
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