FOR IMMEDIATE RELEASE
1996 - 0184
- Consolidated Net Revenue Up 20 Percent -
Tokyo, October 25, 1996 -- Fujitsu Limited today reported consolidated net sales up nearly 20 per cent to 1,962.0 billion yen ($17,676 million). Though Fujitsu's revenues showed strong growth, profits fell during the first half of the 1996 Fiscal Year covering the six month period from April 1 to September 30, 1996.
Fujitsu's revenues grew due to strong worldwide sales of telecommunications systems, computers and information processing systems.
The Company's half-year net sales rose 19.3 percent over the 1,643.9 billion yen ($14,810 million) reported during the same six-month period in 1995.
Despite significant growth in sales and more effective use of management resources, profitability was adversely affected by several factors. Profits were impacted by the deterioration of the DRAM semiconductor memory market, restructuring charges taken by subsidiary FDK Corporation and charges for inventory valuation made by Amdahl Corporation for their transition to the new generation of mainframe computer products.
Sales in two of Fujitsu's major product areas, telecommunications systems and computers and other information processing systems, showed marked growth, rising by 34.6 and 22 percent respectively over the equivalent half-year period in 1995.
The Company's consolidated net income for the first half-year period fell by 87.3 percent to 3.9 billion yen ($35 million) compared to the 30.6 billion yen ($276 million) posted in the same half of 1995. Similarly, there was a decline in half-year profit per share to 2.1 yen ($0.02), down 87.5 percent from the 16.8 yen ($0.15) per share profit reported in the first half 1995.
Headquartered in Tokyo, Fujitsu Limited is the world's second largest computer manufacturer and an international leader in telecommunications, semiconductors and electronic components, software and services. Financial results reflect the performance of 448 consolidated subsidiaries (426 in first half 1995), including ICL PLC, Fujitsu America, Inc., and Fujitsu Microelectronics, Inc., as well as 38 affiliates (same as 1995), including Fanuc Ltd. and Amdahl Corporation, using the applied equity method.
* Note: All yen figures have been converted to U.S. dollars for convenience only at a rate of $1=111 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.
|1H OF FY1996
|1H OF FY1995
| 1H OF FY1996
Despite some positive signs from increased public investment and private consumption, the Japanese economy continued to face difficulties during this period, with full-fledged recovery still elusive. Internationally, the period saw further growth in the U.S. economy and continued strong economic performance in Asia, while the European economy showed no sign of improvement.
In the telecommunications and information processing markets, there was continued growth due to deregulation in the communications industry, increased use of corporate network systems, and rising consumer demand, particularly for Internet related devices and mobile telephones. However, demand in the semiconductor market started to soften at the beginning of this year, particularly for DRAM memory products.
In today's changing environment, the company is striving to leverage the Fujitsu Group's strength on a global scale. For example, a new network communications company was established in the U.S, new PC companies were set up in the U.S. and U.K., and volume production of magnetic disk devices was started at a new factory in the Philippines.
Under the circumstances, the Fujitsu Group will further promote the globalization of its operations and also plans to strengthen its infrastructure, services and software businesses in response to the growing demand for networks.
Although pricing prospects for DRAM memories are unclear, the Company expects to post steady sales increases, supported by a continuation of the strong sales growth in telecommunications systems and in computers and information processing systems as was seen during the first half-year period.
As a result, the Company projects net sales for the full 1996 fiscal year of 4,450 billion yen, up 18 percent from fiscal 1995.
Based on these market conditions, the Company makes the following earnings projections for Fiscal 1996:
|Billions of Yen||Increase Over Previous
Notes for Editors:
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 Fujitsu Group of over 400 technology, software, and service companies posted global revenues of more than $34 billion in the fiscal year ended March 31, 1996.
FOR MORE INFORMATION, PLEASE CONTACT:
Fujitsu Limited, Public Relations
Phone: (+81-3) 3215-5236 or 3213-4160 Fax: 3216-9365
Internet e-mail:firstname.lastname@example.org email@example.com
Internet Server:Fujitsu Worldwide Home Page in English
1996 Annual Report: Annual Report March 1996
Graphical Highlights from last year:Financial Highlights
Last Year's Earnings:Fujitsu's Half-Year Earnings Post Strong Gains
Trends in Telecommunications Market and Telecommunications at Fujitsu:Telecommunications
|Cash and time deposits||365,248||418,803||$ 3,290|
|Marketable and other securities||42,690||42,127||385|
|Other current assets||191,731||176,851||1,727|
|Total current assets||2,376,240||2,423,897||1,407|
|Investments and long-term loans||624,624||623,479||5,627|
|Property, plant and equipment|
|less accumulated depreciation||1,199,898||1,124,917||10,810|
|Liabilities and shareholders' equity|
|Short-term borrowings and current
portion of long-term debt
|Other current liabilities||526,188||598,847||4,740|
|Total current liabilities||1,960,949||1,955,926||17,666|
|Other long-term liabilities||278,138||286,526||2,506|
|Shareholders' equity :|
|Total shareholders' equity||1,147,267||1,149,399||10,336|
|Change||FY 1995||1st Half
|Net sales||1,962,046||1,643,955||+ 19%||3,761,966||$17,676|
|Operating costs and expenses:|
|Cost of goods sold||1,343,467||1,071,051||2,495,014||12,103|
|Selling, general and administrative expenses||541,366||488,496||1,061,070||4,877|
|Operating income||77,213||84,408||- 9%||205,882||696|
|Other income (expenses):|
|Interest and dividend income||4,966||5,647||10,976||45|
|Other, net||(15,715)||( 5,802)||(40,583)||(142)|
|Income before income taxes||42,409||59,894||- 29%||127,686||382|
|Equity in earnings (losses) of affiliated companies||(4,340)||6,232||11,901||(38)|
|Net income||3,875||30,596||- 87%||63,113||$ 35|
|Net income per share||2.1||16.8||34.5||$0.019|
|Cash dividends per share||10.0||10.0||10.0||0.090|
* Note:All yen figures have been converted to U.S. dollars for convenience only at a uniform rate of $1=111 yen.