FOR IMMEDIATE RELEASE
Contact: Yuri Momomoto
(03)3215-5236 or 3213-4160
Fujitsu's Half-Year Earnings Post Strong Gains
-- Consolidated Net Income Up 441 Percent --
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.
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* 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
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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
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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.
FOR MORE INFORMATION, PLEASE CONTACT:
Fujitsu Limited, Public Relations
Phone: (+81-3) 3215-5236 or 3213-4160 Fax: 3216-9365
Internet e-mail: momo@hq.fujitsu.co.jp or mike@hq.fujitsu.co.jp
Internet Server: http://www.fujitsu.com/
(Japanse Home Page) (English Home Page)
Internet Address: webmaster@www.fujitsu.co.jp