TIDMFUJ
RNS Number : 8643Y
Fujitsu Ld
30 January 2014
Fujitsu Limited
Consolidated Financial Results for the Nine Months Ended
December 31, 2013
January 30, 2014
Fujitsu Limited
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Stock exchange listings: Tokyo, Nagoya
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Code number: 6702
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URL: http://jp.fujitsu.com/
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Representative: Masami Yamamoto, President and Representative Director
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Contact person: Isamu Yamamori
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Vice President, Public and Investor Relations Division
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Tel. +81 3 6252 2175
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Scheduled filling date of statutory financial report: February 12, 2014
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Scheduled dividend payment date: -
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Supplementary material: No
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Financial results meeting: Yes (for media and analysts)
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1. Consolidated Results for the Nine Months Ended December 31,
2013
(Monetary amounts are rounded to the nearest million yen)
(1) Consolidated Financial Results
(The percentage figures represent the percentage of increase or
decrease against the same period of the previous year.)
Yen (Millions)
Net Sales Change Operating Change Net Income Change
(%) Income (%) (Loss) (%)
(Loss)
-------------------- ---------- ------- ---------- ------- ----------- -------
9 Months FY
2013 3,352,337 7.4 37,009 - 2,396 -
(4/1/13-12/31/13)
-------------------- ---------- ------- ---------- ------- ----------- -------
9 Months FY
2012 3,120,064 -1.6 -1,527 - -95,221 -
(4/1/12-12/31/12)
-------------------- ---------- ------- ---------- ------- ----------- -------
Reference Comprehensive income : 9 Months FY2013 77,122 million
yen [ - %]
9 Months FY2012 -81,863 million yen [ - %]
Yen
Net Income (Loss) per
Common Share
--------------------- ------------------------
Basic Diluted
--------------------- ----------- -----------
9 Months FY
2013 1.16 1.16
(4/1/13-12/31/13)
--------------------- ----------- -----------
9 Months FY -46.02 -
2012
(4/1/12-12/31/12)
--------------------- ----------- -----------
(2) Consolidated Financial Position Yen (Millions)
Total Assets Net Assets Owners' Equity
Ratio (%)
-------------- ------------- ----------- ---------------
December 31,
2013 3,200,563 824,872 21.7
-------------- ------------- ----------- ---------------
March 31,
2013 2,920,326 752,438 21.4
-------------- ------------- ----------- ---------------
Reference Owners' Equity: December 31, 2013 693,687 million yen
March 31, 2013 624,045 million yen
2. Dividends per Share of Common Stock
Dividends per Share (Yen)
-------------------- ----------------------------------
Year- Full
1Q 2Q 3Q End Year
-------------------- ---- ------ ---- ------ ------
FY 2012 - 5.00 - 0.00 5.00
-------------------- ---- ------ ---- ------ ------
FY 2013 - 0.00 -
-------------------- ---- ------ ---- ------ ------
FY 2013 (Forecast) - -
-------------------- ---- ------ ---- ------ ------
Note: Revisions to forecast of dividends in this quarter:
None
Year-end dividend amount for FY2013 (fiscal year ending March
31, 2014) has yet to be determined.
3. Consolidated Earnings Forecast for FY2013
(The percentage figures represent the percentage of increase or
decrease against the same period of the previous year.)
Yen (Millions, except per share data)
Net Sales Change Operating Change Net Income Change Net Income
(%) Income (%) (%) per Common
Share
-------- --------- ------ --------- ------ ---------- ------ -----------
FY 2013 4,680,000 6.8 140,000 58.6 45,000 - 21.75
-------- --------- ------ --------- ------ ---------- ------ -----------
Note; Revisions to forecast of financial results in this
quarter: Yes
4. Other Information
(1) Significant Changes to Subsidiaries in the Current Reporting
Period
(Changes to specified subsidiaries resulting from changes in
scope of consolidation): None
(2) Application of accounting procedures specific to preparation
of quarterly consolidated financial
statements: None
(3) Changes in accounting policies and accounting estimates, and
restatements
1. Changes in accounting policies arising from revision of
accounting standards: Yes
2. Changes arising from factors other than 1: None
3. Changes in accounting estimates: None
4. Restatements: None
(4) Number of Issued Shares (Common shares)
1. Number of issued As of December 2,070,018,213 shares
shares at end of period 31, 2013
------------------------- ----------------- -------------- -------
As of March 31, 2,070,018,213 shares
2013
------------------------- ----------------- -------------- -------
2. Treasury stock held As of December 849,528 shares
at end of period 31, 2013
------------------------- ----------------- -------------- -------
As of March 31, 723,691 shares
2013
------------------------- ----------------- -------------- -------
3. Average number of 9 Months FY 2013 2,069,235,197 shares
issued and outstanding
shares during period
------------------------- ----------------- -------------- -------
9 Months FY 2012 2,069,339,455 shares
------------------------- ----------------- -------------- -------
Notes:
1. Compliance with Quarterly Review Procedures
These materials fall outside the jurisdiction of the quarterly
review procedures of the Financial Instruments and Exchange Act.
Therefore, at the time of disclosure, a portion of the review has
not yet been completed.
Upon completion of the review, a statutory quarterly report will
be submitted on February 12, 2014.
2. Precautions on Usage of Earnings Projections
These materials may contain forward-looking statements that are
based on management's current information, views and assumptions
and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially
from those expressed or implied in such statements. Actual results
may differ materially from those projected or implied in the
forward-looking statements due to, without limitation, the
following factors listed below.
- General economic and market conditions in key markets
(Particularly in Japan, North America, Europe, and Asia,
including China)
- Rapid changes in the high-technology market (particularly
semiconductors, PCs, etc.)
- Fluctuations in exchange rates or interest rates
- Fluctuations in capital markets
- Intensifying price competition
- Changes in market positioning due to competition in
R&D
- Changes in the environment for the procurement of parts and
components
- Changes in competitive relationships relating to
collaborations, alliances and technical provisions
- Risks related to public regulations, public policy and tax
matters
- Risks related to product or services defects
- Potential emergence of unprofitable projects
- Risks related to R&D investments, capital expenditures,
business acquisitions, business restructuring, etc.
- Risks related to natural disasters and unforeseen events
- Changes in accounting policies
1. Explanation of Financial Results
1-1. Overview
<Business Environment>
During the first nine months of fiscal 2013 (April 1, 2013 -
December 31, 2013), the global economy continued to experience a
moderate recovery. In Europe, there were signs of an economic
recovery as concerns over sovereign debt receded and the value of
the euro rose substantially due to the decreasing likelihood of
additional monetary easing. In the US, the Federal Reserve's
decision to taper its policy of quantitative easing has led to
trends toward an economic recovery. There is also less uncertainty
in regard to the future of the US government's fiscal policy.
There was also progress in Japan's economic recovery. In
addition to heightened expectations for a recovery, there has also
been a moderate increase in consumer spending. Monetary easing by
the Bank of Japan, a recovery in corporate earnings, particularly
among exporters who have benefited from the rapid weakening of the
yen, and the rise in stock prices have all contributed to promote
recovery.
Investment in information and communication technology (ICT) is
gradually increasing on signs of a rebound in corporate capital
investment.
FY2013 Third-Quarter Financial Results (Billion Yen)
3Q FY2012 3Q FY2013 Change vs. 3Q FY2012
10/1/12- 10/1/13-
12/31/12 12/31/13
----------------------- ----------- ----------
Change (%)
----------------------- ----------- ---------- --------- ------------
Net Sales 1,048.2 1,200.7 152.4 < 7 > 14.5
Cost of Sales 776.5 894.9 118.3 15.2
----------------------- ----------- ---------- --------- ------------
Gross Profit 271.7 305.8 34.1 12.6
[Gross Profit Margin] [ 25.9%] [ 25.5%] [ -0.4%]
Selling, General
and Administrative
Expenses 277.5 279.6 2.0 0.7
----------------------- ----------- ---------- --------- ------------
Operating Income
(Loss) -5.8 26.1 32.0 -
[Operating Income [ -0.6%] [ 2.2%] [ 2.8%]
Margin]
----------------------- ----------- ---------- --------- ------------
Other Income and
Expenses -80.4 -14.1 66.3 -
Income (Loss) Before
Income Taxes and
Minority Interests -86.3 12.0 98.4 -
----------------------- ----------- ---------- --------- ------------
Income Taxes -5.8 -1.2 4.5 -
----------------------- ----------- ---------- --------- ------------
Minority Interests 0.2 1.2 0.9 349.0
----------------------- ----------- ---------- --------- ------------
Net Income (Loss) -80.8 12.0 92.8 -
----------------------- ----------- ---------- --------- ------------
< > Change (%) Constant Currency
FY2013 Nine-Month Financial Results (Billion Yen)
FY2012 FY2013 Change vs. 9 Months
FY2012
9 Months 9 Months
4/1/12- 4/1/13-
12/31/12 12/31/13
------------------- ----------- ----------
Change (%)
------------------- ----------- ---------- -------- -----------
< 0 >
Net Sales 3,120.0 3,352.3 232.2 7.4
------------------- ----------- ---------- -------- -----------
Operating Income
(Loss) -1.5 37.0 38.5 -
[Operating Income [ -0.0%] [ 1.1%] [ 1.1%]
Margin]
------------------- ----------- ---------- -------- -----------
Other Income and
Expenses -85.0 -14.8 70.1 -
------------------- ----------- ---------- -------- -----------
Net Income (Loss) -95.2 2.3 97.6 -
------------------- ----------- ---------- -------- -----------
< > Change (%) Constant Currency
Quarterly Breakdown of Results (Billion Yen)
FY2012 FY2013
------ ------------------ ---------------------------------- -------------------------
1Q 2Q 3Q 4Q 1Q 2Q 3Q
------------------------- ------- ------- ------- ------- ------- ------- -------
Total Sales 957.3 1,114.4 1,048.2 1,261.6 999.2 1,152.3 1,200.7
------
Operating Income -26.7 31.0 -5.8 89.7 -22.8 33.6 26.1
[Operating Income [-2.8%] [2.8%] [-0.6%] [7.1%] [-2.3%] [2.9%] [2.2%]
Margin]
------------------------- ------- ------- ------- ------- ------- ------- -------
[Results by Business Segment]
Technology
Solutions Sales 627.1 713.3 700.6 901.3 677.5 785.3 786.3
Operating Income -0.8 44.5 21.8 108.3 2.5 55.7 44.4
[Operating Income [-0.1%] [6.2%] [3.1%] [12.0%] [0.4%] [7.1%] [5.7%]
Margin]
------------------------------ ------- ------- ------- ------- ------- ------- -------
Services Sales 513.6 575.6 576.5 721.4 554.9 631.6 649.8
-----------
Operating Income 3.2 30.7 20.0 70.5 5.5 36.7 37.1
[Operating Income [0.6%] [5.3%] [3.5%] [9.8%] [1.0%] [5.8%] [5.7%]
Margin]
------------------------------ ------- ------- ------- ------- ------- ------- -------
System
Platforms Sales 113.4 137.6 124.1 179.8 122.5 153.7 136.4
-----------
Operating Income -4.0 13.7 1.8 37.8 -2.9 19.0 7.3
[Operating Income [-3.6%] [10.0%] [1.5%] [21.0%] [-2.4%] [12.4%] [5.4%]
Margin]
------------------------------ ------- ------- ------- ------- ------- ------- -------
Device
Solutions Sales 130.3 138.3 129.5 142.1 145.3 159.0 146.0
------------
Operating Income -3.6 -3.3 -9.3 2.1 7.6 10.4 4.2
[Operating Income [-2.8%] [-2.4%] [-7.2%] [1.5%] [5.3%] [6.5%] [2.9%]
Margin]
------------------------------ ------- ------- ------- ------- ------- ------- -------
Ubiquitous
Solutions Sales 234.6 314.7 266.5 274.3 215.9 262.7 321.2
------------
Operating Income -2.0 12.4 -2.0 1.2 -17.1 -11.6 -5.4
[Operating Income [-0.9%] [4.0%] [-0.8%] [0.5%] [-7.9%] [-4.4%] [-1.7%]
Margin]
------------------------------ ------- ------- ------- ------- ------- ------- -------
*In accordance with the amended IAS 19 Employee Benefits of the
International Financial Reporting Standards (IFRS), which the
Fujitsu Group's consolidated subsidiaries outside of Japan have
adopted, the figures for fiscal 2012 have been retroactively
revised. As a result, selling, general and administrative expenses
have increased, and operating income has decreased, by 1.6 billion
yen in the first quarter of fiscal 2012, by 1.6 billion yen in the
second quarter, by 1.7 billion yen in the third quarter, and by 1.9
billion yen in the fourth quarter. In terms of the impact on
segment results, all of these changes were in the Services
sub-segment. Similarly, other income statement figures, including
net income, have also been revised.
Net assets have been reduced due to the unrecognized obligation
for retirement benefits of subsidiaries outside Japan as of the end
of fiscal 2012, which amounted to 157.3 billion yen, being brought
onto the consolidated balance sheet.
FY2013 Third-Quarter Major Items in Other Income and Expenses (Billion Yen)
Item Amount Major Items
------------------------------------- ------ -------------------------------------
3.8
------------------------------------ ------ -------------------------------------
Other Gain on Sales 2.1 Income from sale of the Minami-Tama
Income of Property, Plant site
Plant and Equipment
and Intangible
Assets
---------- ------------------------- ------ -------------------------------------
Gain on Sales 1.6 Income from sale of Fujitsu General
of Investment Limited shares
Securities
---------- ------------------------- ------ -------------------------------------
-22.4
------------------------------------ ------ -------------------------------------
Other Loss on Reversal -20.5 Loss on the reversal of the foreign
Expenses of Foreign Currency currency translation adjustments
Translation Adjustments because of the liquidation of
the US subsidiary Fujitsu Management
Services of America, Inc.
---------- ------------------------- ------ -------------------------------------
Restructuring -1.8 Personnel-related expenses, primarily
Charges from businesses outside Japan,
and structural reform expenses
for the LSI device business
------------------------------------ ------ -------------------------------------
1-2. Third Quarter
Note: In these explanatory materials, the yen figures for net
sales, operating income, and other figures are converted into US$
amounts, for reference purposes, at a rate of $1=105 yen, the
approximate Tokyo foreign exchange market rate on December 31,
2013. Figures for and comparisons to prior reporting periods are
provided only for reference. The impact of foreign exchange
fluctuations has been calculated by using the average US dollar,
euro, and British pound foreign exchange rates for the third
quarter of fiscal 2012 to translate the current period's net sales
outside Japan into yen.
<Profit and Loss>
Consolidated net sales for the third quarter of fiscal 2013 were
1,200.7 billion yen (US$11,435 million), an increase of 14.5% from
the third quarter of fiscal 2012.
Net sales in Japan rose by 9.2%. Sales of system integration
services increased, primarily to the public sector and financial
services sector. Sales of PCs also increased, primarily to
enterprise customers.
Sales outside of Japan rose by 24.6%. Excluding the impact of
foreign exchange movements, however, sales increased by 2%. In
North America, sales of car audio and navigation systems as well as
sales of LSI devices increased.
For the third quarter of fiscal 2013, the average yen exchange
rates against major currencies were 100 yen for the US dollar
(representing yen depreciation of 19 yen), 137 yen for the euro
(depreciation of 32 yen), and 163 yen for the British pound
(depreciation of 33 yen) compared with the same period of the
previous fiscal year. As a result, the impact of foreign exchange
fluctuations for the period was to increase net sales by
approximately 80.0 billion yen compared to the third quarter of
fiscal 2012. Sales generated outside Japan as a percentage of total
sales were 38.1%, an increase of 3.1 percentage points compared to
the third quarter of the previous fiscal year.
Gross profit was 305.8 billion yen, up 34.1 billion yen from the
third quarter of fiscal 2012 as a result of the increase in sales
and the various reform measures implemented. The gross profit
margin was 25.5%, a decline of 0.4 of a percentage point from the
third quarter of the prior fiscal year, primarily as a result of
deteriorating profitability in the mobile phone business.
Selling, general and administrative expenses were 279.6 billion
yen, an increase of 2.0 billion yen from the third quarter of
fiscal 2012, primarily the result of foreign exchange movements.
Group-wide efforts to generate cost efficiencies are progressing,
and, excluding the impact of foreign exchange fluctuations, on a
constant-currency basis expenses are declining.
As a result of the above factors, Fujitsu recorded operating
income of 26.1 billion yen (US$249 million), an improvement of 32.0
billion yen from the previous fiscal year's third quarter. In
addition to improved results, particularly in the Technology
Solutions segment, structural reforms in the LSI device business
and in businesses outside Japan and workforce-related measures
contributed to the rebound in operating income.
In other income and expenses, Fujitsu recorded a loss of 14.1
billion yen, representing an improvement of 66.3 billion yen from
the previous fiscal year's third quarter, when large restructuring
expenses and impairment losses were recorded. The company recorded
a gain on the sale of investment securities of 1.6 billion yen, and
a gain on the sale of property, plant and equipment of 2.1 billion
yen. On the other hand, in accordance with the liquidation of the
US subsidiary Fujitsu Management Services of America, Inc., the
company recorded a loss of 20.5 billion yen on the reversal of
foreign currency translation adjustments.
Fujitsu reported consolidated net income of 12.0 billion yen
(US$114 million), an improvement of 92.8 billion yen compared to
the third quarter of fiscal 2012. In accordance with the
liquidation of Fujitsu Management Services of America, Inc., the
income tax burden declined. The improvement in net income is the
result of improved operating income in this fiscal year's third
quarter and the large extraordinary losses recorded in the prior
fiscal year's third quarter.
<Results by Business Segment>
Information on fiscal 2013 third-quarter consolidated net sales
(including intersegment sales) and operating income broken out by
business segment is presented as follows.
Technology Solutions
(Billion Yen)
------------ -------------------------------------
Third Quarter Change
FY2013 vs.
3Q FY2012
------------ ------------------- ----------------
Net Sales 786.3 12.2 %
------------------- ----------------
Japan 483.1 7.1 %
Outside
Japan 303.1 21.6 %
----------- ------------------- ----------------
Operating
Income 44.4 22.6
------------ ------------------- ----------------
Consolidated net sales in the Technology Solutions segment
amounted to 786.3 billion yen (US$7,489 million), up 12.2% from the
third quarter of fiscal 2012. Sales in Japan increased 7.1%. In
system integration services, sales increased, primarily in the
public sector and financial services sector, as customers expanded
their investment spending. In network products, while demand for 3G
communications equipment to deal with the larger volume of
communications traffic has passed its peak, overall sales increased
as a result of spending by telecommunications carriers to raise LTE
service area coverage and increase transmission speeds.
Server-related sales increased due to the contribution of
large-scale systems deals in the public sector. In infrastructure
services, although sales of outsourcing services were stable,
overall sales were essentially unchanged from the previous fiscal
year's third quarter. This was due to an increase in demand related
to network services in the third quarter of the previous fiscal
year as telecommunications carriers sought to deal with a larger
volume of communications traffic. Sales outside Japan increased
21.6% but were essentially unchanged on a constant-currency
basis.
The segment posted operating income of 44.4 billion yen (US$423
million), up 22.6 billion yen compared to the third quarter of
fiscal 2012. In Japan, despite lower sales of network products,
operating income was significantly higher because of increased
sales of system integration services and network products, in
addition to the impact of workforce-related measures. Outside
Japan, operating income benefited from the impact of structural
reforms and lower amortization expenses for goodwill.
(a) Services
(Billion Yen)
------------ -------------------------------------
Third Quarter Change
FY2013 vs.
3Q FY2012
------------ ------------------- ----------------
Net Sales 649.8 12.7 %
------------------- ----------------
Japan 382.0 6.9 %
Outside
Japan 267.8 22.3 %
----------- ------------------- ----------------
Operating
Income 37.1 17.0
------------ ------------------- ----------------
Net sales in the Services sub-segment were 649.8 billion yen
(US$6,189 million), up 12.7% from the same period a year earlier.
In Japan, sales increased 6.9%. In system integration services,
sales increased, primarily in the public sector and financial
services sector. In infrastructure services, sales of outsourcing
services were stable, but overall sales were essentially unchanged
from the third quarter of fiscal 2012, when there was an increase
in demand related to network services, as telecommunications
carriers sought to deal with a larger volume of communications
traffic. Sales outside Japan increased 22.3% but were essentially
unchanged on a constant-currency basis.
Operating income for the Services sub-segment was 37.1 billion
yen (US$353 million), up 17.0 billion yen compared to the same
period of fiscal 2012. In Japan, despite lower sales of network
products, operating income rose because of higher sales of system
integration services, in addition to the impact of
workforce-related measures. Outside Japan, operating income
benefited from the impact of structural reforms and lower
amortization expenses for goodwill.
(b) System Platforms
(Billion Yen)
------------ -------------------------------------
Third Quarter Change
FY2013 vs.
3Q FY2012
------------ ------------------- ----------------
Net Sales 136.4 9.9 %
------------------- ----------------
Japan 101.1 7.8 %
Outside
Japan 35.2 16.6 %
----------- ------------------- ----------------
Operating
Income 7.3 5.5
------------ ------------------- ----------------
Net sales in the System Platforms sub-segment were 136.4 billion
yen (US$1,299 million), an increase of 9.9% from the third quarter
of fiscal 2012. Sales in Japan rose 7.8%. In network products,
while demand for 3G communications equipment to deal with the
larger volume of communications traffic has passed its peak,
overall sales increased as a result of spending by
telecommunications carriers to expand LTE service area coverage and
increase transmission speeds. Server-related sales increased due to
the contribution of large-scale systems deals in the public sector.
Sales outside Japan increased 16.6%. Excluding the impact of
foreign currency movements, however, sales fell by 5%. Sales of a
new UNIX server model were sluggish.
The System Platforms sub-segment posted operating income of 7.3
billion yen (US$70 million), up 5.5 billion yen from the same
period of the previous fiscal year. Despite increased upfront
R&D spending on network products in Japan, operating income
increased because of the impact of higher sales.
Ubiquitous Solutions
(Billion Yen)
------------ -------------------------------------
Third Quarter Change
FY2013 vs.
3Q FY2012
------------ ------------------- ----------------
Net Sales 321.2 20.6 %
------------------- ----------------
Japan 234.2 16.9 %
Outside
Japan 87.0 31.7 %
----------- ------------------- ----------------
Operating
Income -5.4 -3.3
------------ ------------------- ----------------
Net sales in the Ubiquitous Solutions segment were 321.2 billion
yen (US$3,059 million), an increase of 20.6% from the third quarter
of fiscal 2012. Sales in Japan rose by 16.9%. There was a
significant increase in enterprise PC sales on higher demand for
upgrades in accordance with the ending of support for an operating
system product. Sales of consumer PCs fell as unit sales declined
due to the shrinking market. Overall, sales of PCs increased. In
mobile phones, sales in the first half of the fiscal year fell
sharply, but rose in the third quarter because one of Fujitsu's
smartphones was selected by a telecom carrier as a recommended
model. Sales of the Mobilewear sub-segment's car audio and
navigation systems had been sluggish in the wake of the conclusion
of the government's subsidy program for eco-friendly vehicles, but
increased in the third quarter after sales of new vehicles
recovered. Sales outside Japan increased 31.7%. On a constant
currency basis, sales increased 10%. Unit sales of PCs in Europe
declined due to a shift in the sales strategy to emphasize
profitability, but Mobilewear sales rose, primarily in North
America.
The Ubiquitous Solutions segment posted an operating loss of 5.4
billion yen (US$51 million), a deterioration of 3.3 billion yen
from the third quarter of fiscal 2012. Operating income in Japan
was adversely impacted by higher costs due to functionality
enhancements, yen depreciation, and price erosion, although sales
of PCs increased. Sales in the Mobilewear sub-segment also
increased, but it was adversely impacted by higher development
expenses. Outside of Japan, in the third quarter of fiscal 2012,
euro weakness against the dollar caused dollar-denominated parts
procurement costs to rise in Europe. In addition, operating income
outside Japan in the current fiscal year's third quarter benefitted
from the rise in sales of the Mobilewear sub-segment.
In its mobile phone business, Fujitsu has decided to integrate
the production facilities of two of its mobile phone manufacturing
subsidiaries, Fujitsu Mobile-phone Products Limited (Tochigi
prefecture) and Fujitsu Peripherals Limited (Hyogo prefecture). The
target date for completion of the integration, which will
consolidate mobile phone production at Fujitsu Peripherals, is
April, 2014. Fujitsu aims to increase productivity and create a
highly flexible production facility agile enough to withstand
volume fluctuations. For product development, Fujitsu aims to
streamline operations through a shared development model, enabling
staff to be reallocated to new business areas, such as enterprise
solutions and automotive-related businesses. Fujitsu is committed
to continuing to offer superior mobile devices along with the
services with which they can be used.
Device Solutions
(Billion Yen)
------------ -------------------------------------
Third Quarter Change
FY2013 vs.
3Q FY2012
------------ ------------------- ----------------
Net Sales 146.0 12.8 %
------------------- ----------------
Japan 73.3 0.4 %
Outside
Japan 72.7 28.8 %
----------- ------------------- ----------------
Operating
Income 4.2 13.5
------------ ------------------- ----------------
Net sales in Device Solutions amounted to 146.0 billion yen
(US$1,390 million), up 12.8% from the third quarter of fiscal 2012.
Sales in Japan were essentially unchanged. Sales of LSI devices
used in IT equipment and manufacturing equipment decreased, and
sales of LSI devices used in smartphones, which had been strong in
the first half of the fiscal year, were sluggish in the third
quarter. On the other hand, in electronic components, while sales
of semiconductor packages and batteries were essentially unchanged,
sales of optical transceiver modules for telecommunications
equipment increased. Sales outside Japan increased 28.8%. On a
constant currency basis, sales increased 4%. Sales of LSI devices
increased in the Americas and Asia.
The Device Solutions segment recorded operating income of 4.2
billion yen (US$40 million), representing an improvement of 13.5
billion yen from the third quarter of fiscal 2012. In Japan,
operating income benefited from lower overhead expenses because of
an early retirement incentive plan and other factors in the LSI
device business, as well as from higher sales of electronic
components. Outside Japan, results were bolstered by higher demand
for LSI devices and electronic components as well as by the impact
of the weaker yen.
1-3. Nine Months
Note: In these explanatory materials, the yen figures for net
sales, operating income, and other figures are converted into US$
amounts, for reference purposes, at a rate of $1=105 yen, the
approximate Tokyo foreign exchange market rate on December 31,
2013. Figures for and comparisons to prior reporting periods are
provided only for reference. The impact of foreign exchange
fluctuations has been calculated by using the average US dollar,
euro, and British pound foreign exchange rates for the first nine
months of fiscal 2012 to translate the current period's net sales
outside Japan into yen.
<Profit and Loss>
Consolidated net sales for the first nine months of fiscal 2013
were 3,352.3 billion yen (US$31,927 million), an increase of 7.4%
from the first nine months of fiscal 2012.
Net sales in Japan declined by 1.2%. Sales of system integration
services increased, primarily in the public sector and financial
services sector, and sales of PCs and car audio and navigation
equipment also rose, but mobile phones sales fell sharply,
primarily in the first half of the fiscal year. Sales outside of
Japan rose by 24.2%. On a constant-currency basis, sales increased
by 3%. Sales of PCs in Europe declined, as did sales of UNIX
servers in the US, but sales of optical transmission systems and
car audio and navigation systems in North America increased, and
there were also higher sales of LSI devices and electronic
components.
For the first nine months of fiscal 2013, the average yen
exchange rates against major currencies were 99 yen for the US
dollar (representing yen depreciation of 19 yen), 132 yen for the
euro (depreciation of 30 yen), and 156 yen for the British pound
(depreciation of 29 yen) compared with the same period of the
previous fiscal year. As a result, the impact of foreign exchange
fluctuations for the period was to increase net sales by
approximately 230.0 billion yen compared to the first nine months
of fiscal 2012. Sales generated outside Japan as a percentage of
total sales were 39.3%, up 5.3 percentage points compared to the
first nine months of the previous fiscal year.
Gross profit was 875.9 billion yen, up 44.0 billion yen from the
same period in fiscal 2012. Despite the adverse impact from the
decline in sales of mobile phones, gross profit increased because
of foreign exchange movements and a variety of measures implemented
to reduce costs. The gross profit margin was 26.1%, a decline of
0.6 of a percentage point from the first nine months of the
previous fiscal year, primarily as a result of lower profitability
in the company's mobile phone business.
Selling, general and administrative expenses were 838.9 billion
yen, an increase of 5.5 billion yen from the same period of fiscal
2012, primarily the result of foreign exchange fluctuations.
Group-wide efforts to generate cost efficiencies are progressing,
and, excluding the impact of foreign exchange fluctuations, on a
constant-currency basis expenses are declining.
As a result of the above factors, Fujitsu recorded operating
income of 37.0 billion yen (US$352 million), an improvement of 38.5
billion yen from the same period in the previous fiscal year.
Structural reforms in the LSI device business and businesses
outside of Japan contributed approximately 21.0 billion yen to
operating income, and workforce-related measure contributed
approximately 19.0 billion yen.
In other income and expenses, Fujitsu recorded a loss of 14.8
billion yen, representing an improvement of 70.1 billion yen from
the first nine months of the previous fiscal year, when large
restructuring expenses and impairment losses were recorded. The
company recorded a gain on the sale of investment securities of 3.5
billion yen, and a gain on the sale of property, plant and
equipment of 2.1 billion yen. On the other hand, in accordance with
the liquidation of the US subsidiary Fujitsu Management Services of
America, Inc., the company recorded a loss of 20.5 billion yen on
the reversal of foreign currency translation adjustments.
Fujitsu reported consolidated net income of 2.3 billion yen
(US$22 million), an improvement of 97.6 billion yen from the first
nine months of fiscal 2012. The improvement in net income is the
result of improved operating income in the first nine months of
this fiscal year and the large extraordinary losses recorded in the
first nine months of the prior fiscal year.
<Results by Business Segment>
Information on fiscal 2013 nine-month consolidated net sales
(including intersegment sales) and operating income broken out by
business segment is presented as follows.
Technology Solutions
(Billion Yen)
------------ -------------------------------------
9 Months Change
FY2013 vs.
9 Months
FY2012
------------ ---------------- -------------------
Net Sales 2,249.3 10.2 %
---------------- -------------------
Japan 1,387.5 4.2 %
Outside
Japan 861.7 21.5 %
----------- ---------------- -------------------
Operating
Income 102.7 37.2
------------ ---------------- -------------------
Consolidated net sales in the Technology Solutions segment
amounted to 2,249.3 billion yen (US$21,422 million), up 10.2% from
the first nine months of fiscal 2012. In Japan, sales rose 4.2%.
Sales of systems integration services increased, primarily in the
public sector and financial services sector owing to expanded
investments by customers. In network products, although demand for
3G communications equipment to handle increasing volumes of
communications traffic has run its course, overall sales increased
as a result of spending by telecommunications carriers to expand
LTE coverage and increase transmission speeds. Server-related sales
increased due to the contribution of large-scale systems deals in
the public sector. In infrastructure services, outsourcing showed
stable results, but overall sales fell on the impact of a shift
away from packaged products that include connection fees to
stand-alone products in the ISP business, and because there was
increased demand related to network services in the same period of
the previous fiscal year, as telecommunications carriers sought to
deal with higher volumes of communications traffic. Sales outside
Japan increased 21.5% compared to the first nine months of fiscal
2012, but they were essentially unchanged on a constant-currency
basis.
The segment posted operating income of 102.7 billion yen (US$978
million), up 37.2 billion yen compared to the first nine months of
fiscal 2012. In Japan, operating income rose as a result of the
impact of workforce-related measures and the impact of increased
sales of systems integration services and network products, despite
a drop in sales of network services. Outside Japan, in addition to
the impact of structural reforms and a reduction in amortization
expenses for goodwill, operating income rose on higher sales of
network products.
(a) Services
(Billion Yen)
------------ -------------------------------------
9 Months Change
FY2013 vs.
9 Months
FY2012
------------ ---------------- -------------------
Net Sales 1,836.5 10.2 %
---------------- -------------------
Japan 1,093.1 4.2 %
Outside
Japan 743.3 20.6 %
----------- ---------------- -------------------
Operating
Income 79.3 25.2
------------ ---------------- -------------------
Net sales in the Services sub-segment amounted to 1,836.5
billion yen (US$17,490 million), up 10.2% from the same period a
year earlier. In Japan, sales rose 4.2%. Sales of systems
integration services increased, primarily in the public sector and
financial services sector. In infrastructure services, outsourcing
showed stronger results, but overall sales fell on the impact of a
shift away from packaged products that include connection fees to
stand-alone products in the ISP business, and because there was
increased demand related to network services in the same period of
the previous fiscal year, as telecommunications carriers sought to
deal with higher volumes of communications traffic. Sales outside
Japan rose 20.6%. On a constant-currency basis, sales were
essentially unchanged from the first nine months of the prior
fiscal year.
Operating income for the Services sub-segment was 79.3 billion
yen (US$755 million), an increase of 25.2 billion yen compared to
the same period of fiscal 2012. In Japan, despite a decline in
sales of network services, operating income as a whole increased on
the impact of workforce-related measures and the positive impact of
higher sales of system integration services. Outside Japan,
operating income was bolstered by the impact of structural reforms
and lower amortization expenses for goodwill.
(b) System Platforms
(Billion Yen)
------------ -------------------------------------
9 Months Change
FY2013 vs.
9 Months
FY2012
------------ ---------------- -------------------
Net Sales 412.7 10.0 %
---------------- -------------------
Japan 294.3 4.2 %
Outside
Japan 118.3 27.6 %
----------- ---------------- -------------------
Operating
Income 23.4 11.9
------------ ---------------- -------------------
Net sales in the System Platforms sub-segment were 412.7 billion
yen (US$3,930 million), an increase of 10% compared to the first
nine months of fiscal 2012. Sales in Japan rose 4.2%. In network
products, although demand for 3G communications equipment to handle
increasing volumes of communications traffic has run its course,
overall sales increased as a result of spending by
telecommunications carriers to expand LTE service area coverage and
increase transmission speeds. Server-related sales increased due to
the contribution of large-scale systems deals in the public sector.
Sales outside Japan rose 27.6%. On a constant-currency basis, sales
rose 3%. Sales of new UNIX server models were weak, but optical
transmission system sales in North America increased on a recovery
in spending by telecommunications carriers.
The System Platforms sub-segment posted operating income of 23.4
billion yen (US$223 million), up 11.9 billion yen compared to the
first nine months of fiscal 2012. In Japan, operating income was
positively impacted by higher sales, despite higher upfront R&D
spending in network products. Outside Japan, operating income was
positively impacted by higher sales of network products and a shift
in the sales strategy to emphasize profitability for sales of PC
servers.
Ubiquitous Solutions
(Billion Yen)
------------ -------------------------------------
9 Months Change
FY2013 vs.
9 Months
FY2012
------------ ---------------- -------------------
Net Sales 799.9 -1.9 %
---------------- -------------------
-10.2
Japan 562.8 %
Outside
Japan 237.1 25.2 %
----------- ---------------- -------------------
Operating
Income -34.1 -42.5
------------ ---------------- -------------------
Net sales in the Ubiquitous Solutions segment were 799.9 billion
yen (US$7,618 million), a decline of 1.9% from the first nine
months of fiscal 2012. Sales in Japan were down 10.2%. There was a
significant increase in enterprise PC sales on higher demand for
upgrades in accordance with the ending of support for an operating
system product. In consumer PCs, sales were down as unit sales fell
due to the shrinking market. Still, PC sales overall increased. In
mobile phones, sales were up in the third quarter, but were down
for the nine-month period on account of shrinking market for
feature phones and the impact of revisions in the smartphone sales
strategies of telecommunications carriers. Also impacting
comparisons were the record high shipments of mobile phones
coinciding with the release of multiple new models in the second
quarter of fiscal 2012. Sales of the Mobilewear sub-segment's car
audio and navigation systems had been sluggish in the wake of the
conclusion of the government's subsidy program for eco-friendly
vehicles, but sales increased in the first nine months of fiscal
2013 with the rebound in new vehicle sales. Sales outside Japan
increased 25.2%. On a constant-currency basis, sales increased 5%.
Unit sales of PCs in Europe declined due to a shift in the sales
strategy to emphasize profitability, but sales in the
Mobilewear sub-segment rose, primarily in North America.
The Ubiquitous Solutions segment posted an operating loss of
34.1 billion yen (US$325 million), a deterioration of 42.5 billion
yen from the same period of the previous fiscal year. Operating
income in Japan was adversely impacted by the significant decline
in unit sales of mobile phones and the erosion of unit prices, in
addition to the impact of higher procurement costs due to yen
depreciation and the cost of functionality enhancements. The
depreciating yen also increased procurement costs for PCs, although
this increase was passed along in the form of higher sales prices
and there was also a favorable impact from higher unit sales.
Operating income in the Mobilewear sub-segment was positively
impacted by higher sales, but also faced higher development
expenses. Outside Japan, operating income benefitted from a shift
in the PC sales strategy to emphasize profitability. In addition,
in the same period of the previous fiscal year, euro weakness
against the dollar caused dollar-denominated parts procurement
costs to rise in Europe. Moreover, operating income outside Japan
in the first nine months of the current fiscal year benefitted from
the rise in sales of the Mobilewear sub-segment.
Device Solutions
(Billion Yen)
------------ -------------------------------------
9 Months Change
FY2013 vs.
9 Months
FY2012
------------ ---------------- -------------------
Net Sales 450.5 13.1 %
---------------- -------------------
Japan 214.9 -3.7 %
Outside
Japan 235.5 34.6 %
----------- ---------------- -------------------
Operating
Income 22.2 38.6
------------ ---------------- -------------------
Net sales in Device Solutions amounted to 450.5 billion yen
(US$4,290 million), an increase of 13.1% compared to the first nine
months of fiscal 2012. Sales in Japan declined 3.7%. Sales of LSI
devices used in smartphones increased, but sales of LSI devices
used in digital audio-visual equipment and manufacturing equipment
decreased. Sales of electronic components were essentially
unchanged from the same period in the prior fiscal year. Sales of
semiconductor packages and batteries decreased, but sales of
optical transceiver modules for telecommunications equipment
increased. Sales outside Japan increased 34.6%. On a
constant-currency basis, sales increased 9%. Sales of LSI devices
for smartphones increased. Sales of electronic components to the
Americas and China increased.
The Device Solutions segment recorded operating income of 22.2
billion yen (US$211 million), an improvement of 38.6 billion yen
compared to the first nine months of fiscal 2012. In Japan,
operating income for LSI devices was adversely affected by lower
sales, although an early retirement incentive plan and other
factors had the effect of reducing fixed costs. Capacity
utilization rates on the production lines for 300mm wafers remained
high owing to an increase in demand for use in smartphones,
primarily in the first half of the fiscal year, but capacity
utilization rates on the production lines for standard logic
devices remained low. Fujitsu is planning to consolidate the
production lines for standard logic devices in the Aizu-Wakamatsu
region so as to raise capacity utilization rates. Operating income
outside of Japan improved on higher demand for LSI devices and
electronic components. Another contributing factor was the impact
the depreciating yen had in increasing sales.
Other/Elimination and Corporate
This segment recorded an operating loss of 53.8 billion yen
(US$512 million), an improvement of 5.2 billion yen from the first
nine months of fiscal 2012. This was a result of Group-wide
progress in generating cost efficiencies.
<Geographic Information>
Sales and operating income for Fujitsu and its consolidated
subsidiaries according to country and region are as follows.
Net Sales (Billion Yen)
9 Months
FY2013
---------------- --------
Japan 2,415.8
[2.3%]
---------------- --------
Outside Japan 1,358.0
[25.9%]
--------
EMEA 672.8
[21.9%]
-------------- --------
The Americas 281.8
[49.1%]
-------------- --------
APAC & China 403.2
[19.5%]
-------------- --------
Note: Numbers inside brackets indicate % changes over same
period in previous year.
Operating Income (Billion Yen)
Third Change Nine Change
Quarter vs. Months
3Q
FY2013 FY2012 FY2013 vs.
9 Months
FY2012
------------ --------- --------- --------- ---------
Japan 40.1 26.2 88.0 11.8
[4.6%] [2.8%] [3.6%] [0.4%]
------------ --------- --------- --------- ---------
Outside 5.4 4.7 5.7 23.7
Japan [1.2%] [1.0%] [0.4%] [2.1%]
--------- --------- --------- ---------
EMEA 2.9 3.7 -5.8 14.2
[1.2%] [1.6%] [-0.9%] [2.7%]
---------- --------- --------- --------- ---------
The -0.9 0.2 3.3 7.2
Americas [-1.1%] [0.9%] [1.2%] [3.3%]
---------- --------- --------- --------- ---------
APAC 3.5 0.7 8.2 2.2
& [2.6%] [0.1%] [2.0%] [0.2%]
China
---------- --------- --------- --------- ---------
Note: Numbers inside brackets indicate operating income
margin.
In accordance with the adoption of the amended IAS 19, the
figures for the third quarter and first three quarters of fiscal
2012 have been retroactively revised. Accordingly, operating income
outside Japan, primarily for the EMEA region, has decreased by 1.7
billion yen and 5.0 billion yen, respectively.
2. Explanation of Financial Condition
(1) Assets, Liabilities and Net Assets
Consolidated total assets at the end of the third quarter
amounted to 3,200.5 billion yen (US$30,481 million), an increase of
280.2 billion yen from the end of fiscal 2012. The shift in the
exchange rate to a weaker yen caused total assets to increase by
approximately 140 billion yen. Current assets increased by 227.0
billion yen compared with the end of fiscal 2012, to 1,949.3
billion yen. On account of the weaker yen and in preparation for
anticipated sales, particularly in the services business,
inventories at the end of the third quarter increased to 414.7
billion yen, an increase of 91.6 billion yen from the ending
balance of fiscal 2012. The monthly inventory turnover ratio, which
is an indication of asset utilization efficiency, was 0.96 times,
an improvement of 0.05 times from the end of the third quarter of
fiscal 2012. In addition to more efficient inventory management
primarily in PCs and electronic components, the improvement stemmed
from the impact of the sale of the microcontroller and analog
device business.
Non-current assets increased by 53.2 billion yen from the end of
fiscal 2012, to 1,251.2 billion yen. Investments and other
non-current assets increased by 42.2 billion yen, to 434.4 billion
yen, as the rise in stock prices caused the value of investment
securities to increase.
Consolidated total liabilities amounted to 2,375.6 billion yen
(US$22,625 billion), an increase of 207.8 billion yen compared to
the end of fiscal 2012. Although trade notes and accounts payable
increased because of the impact of the weaker yen, the provision
for restructuring charges decreased because of the payment of
business structure improvement expenses for the LSI device business
and businesses outside Japan. The balance of interest-bearing loans
was 696.6 billion yen, an increase of 161.6 billion yen from the
end of fiscal 2012. Fujitsu issued 80.0 billion yen in straight
bonds to cover the redemption of straight bonds and short-term
borrowings, and short-term borrowings increased to finance a
portion of working capital. As a result, the D/E ratio was 1.00
times, an increase of 0.14 of a percentage point compared to the
end of fiscal 2012, and the net D/E ratio was 0.49 times, a
deterioration of 0.09 of a percentage point compared to the end of
fiscal 2012.
Net assets were 824.8 billion yen (US$7,855 million), an
increase of 72.4 billion yen from the end of fiscal 2012. The
increase is primarily attributable to an increase in accumulated
other comprehensive income as a result of yen depreciation and
rising share prices. The owners' equity ratio was 21.7%, an
increase of 0.3 of a percentage point from the end of fiscal
2012.
(Billion Yen)
FY2012 3Q FY2013 Change 3Q FY2012
(March 31, (Dec. 31, (Dec. 31,
2013) 2013) 2012)
--------------------------- ------------ ----------- ------- -----------
Cash and Cash Equivalents
at End of Period 286.6 356.9 70.3 292.9
Interest-bearing Loans 534.9 696.6 161.6 546.7
Net Interest-bearing
Loans 248.3 339.6 91.3 253.8
Owners' Equity 624.0 693.6 69.6 626.2
--------------------------- ------------ ----------- ------- -----------
D/E Ratio (Times) 0.86 1.00 0.14 0.87
Net D/E Ratio (Times) 0.40 0.49 0.09 0.41
Shareholders' Equity
Ratio 28.3 % 25.9 % -2.4 % 28.2 %
Owners' Equity Ratio 21.4 % 21.7 % 0.3 % 21.8 %
----------------------- -------- ------- ------- -------
1. D/E ratio: Interest-bearing loans/Owners' equity
2. Net D/E ratio: (Interest-bearing loans - Cash and cash
equivalents at end of period)/Owner's equity
3. The figures for the third quarter of fiscal 2012 and
full-year fiscal 2012 have been retroactively revised in accordance
with the adoption of the amended IAS 19 Employee Benefits. Owners'
equity for the third quarter of fiscal 2012 has been reduced by
113.1 billion yen, and it has been reduced by 157.3 billion yen for
full-year fiscal 2012. D/E ratio and others are also revised.
(2) Cash Flows
Net cash provided by operating activities in the first nine
months amounted to 7.1 billion yen (US$68 million). This represents
a decrease in cash inflows of 13.4 billion yen compared to the
first three quarters of fiscal 2012. Although there was an
improvement in income before income taxes and minority interests
because of the impact of structural reforms and workforce-related
measures, operating cash flow declined because of the payment of
business structural improvement expenses for the LSI device
business and businesses outside Japan and because working capital
increased.
Net cash used in investing activities was 86.5 billion yen
(US$824 million). Outflows mainly consisted of the acquisition of
property, plant and equipment amounting to 82.4 billion yen,
primarily related to datacenters, and the acquisition of intangible
assets, primarily software, amounting to 46.3 billion yen,
primarily software. There was an inflow of cash from the sale of
investment securities and an inflow of cash from the maturity of a
time deposit that had been held for fund management purposes.
Compared to the same period in fiscal 2012, net outflows decreased
by 36.2 billion yen.
Free cash flow, the sum of cash flows from operating and
investing activities, was negative 79.4 billion yen (US$756
million), representing a decrease in net cash outflows of 22.7
billion yen compared with the same period in the previous fiscal
year.
Net cash provided by financing activities was 135.3 billion yen
(US$1,289 million). A portion of working capital was financed
through short-term borrowings. In addition, short-term borrowings
in the previous fiscal year that were used to finance a special
contribution to the pension fund of a UK subsidiary were repaid and
replaced by straight bonds and other long-term borrowings. This
represents an increase in net cash inflows of 10.9 billion yen
compared to the first nine months of fiscal 2012.
As a result of the above factors, cash and cash equivalents at
the end of the third quarter of fiscal 2013 were 356.9 billion yen
(US$3,399 million), an increase of 72.3 billion yen compared to the
end of fiscal 2012.
(3) Status of Retirement Benefit Plans
Of Fujitsu's unrecognized obligation for retirement benefits,
157.3 billion yen, representing the portion from the pension plans
of subsidiaries outside Japan, was reflected on the consolidated
balance sheets through other comprehensive income at the beginning
of fiscal 2013. The portion from the pension plans of Fujitsu and
its subsidiaries in Japan will be reflected on the consolidated
balance sheets at the end of fiscal 2013. The amortization expenses
stemming from the actuarial losses in the pension plans of
subsidiaries outside Japan are transferred from other comprehensive
income.
(Billion Yen)
Unrecognized Obligation Amortization Expenses
for Retirement Benefits
(Off Balance Sheet)
--------------------------------------- --------------------------
FY2012 Nine Months FY2013
(As of March 31, 2013) (4/1/13-12/31/13)
----------- ---------------------------------------
(Before Revisions) (After Revisions) Amounts Transferred
From Other
Comprehensive
Income
---------- ------------------- ------------------ ----- -------------------
Total 466.1 308.7 32.8 13.0
------------------- ------------------ ----- -------------------
In Japan 308.7 308.7 19.7 -
---------- ------------------- ------------------ ----- -------------------
Outside
Japan 157.3 - 13.0 13.0
---------- ------------------- ------------------ ----- -------------------
Note: Amortization expenses exclude one-time amortization
expenses of 4.5 billion yen stemming from a partial buyout in the
retirement benefit plans at a European subsidiary.
3. FY2013 Earnings Projections
In the third quarter of fiscal 2013, Fujitsu recorded net sales
of 1,200.7 billion yen, an increase of 152.4 billion yen from the
same period in fiscal 2012, and operating income of 26.1 billion
yen, an improvement of 32.0 billion yen over the same period of the
previous fiscal year. Compared to the financial projections
announced in October 2013, although results for mobile phones fell
below projections, results in the Services sub-segment, which has a
strong flow of current orders, exceeded projections. In addition,
with the beneficial effect of the weaker yen on results in LSI
devices, and with progress in generating company-wide cost
efficiencies, overall consolidated results exceeded
projections.
Moreover, net income in the third quarter was 12.0 billion yen,
a significant improvement of 92.8 billion yen over the prior fiscal
year's third quarter, despite recording a loss on the liquidation
of a US subsidiary. This improvement was the result of increased
operating income and because of the restructuring charges and other
expenses, primarily stemming from the restructuring of the LSI
device business, recorded in the third quarter of fiscal 2012.
In light of these circumstances, Fujitsu has revised its
full-year projections for fiscal 2013 as outlined below. Exchange
rate assumptions for the fourth quarter have also been revised, to
100 yen for the US dollar, 135 yen for the euro, and 160 yen for
the British pound.
Net sales projections for the full fiscal year have been revised
upward by 60 billion yen from the projections announced in October,
to 4,680 billion yen. The Technology Solutions segment accounts for
40 billion yen of this upward revision, reflecting the impact of
the revised exchange rate assumptions on results outside of Japan
in the Services sub-segment. Projected sales in the Ubiquitous
Solutions segment have been revised upward by 30 billion yen.
Although mobile phone sales are lower because of lower unit sales,
the upward revision reflects higher demand for PC upgrades among
enterprise customers and the impact of higher new vehicle
production on sales in the Mobilewear business. Projected sales in
the Device Solutions segment have been revised upward by 5 billion
yen because of higher anticipated sales of LSI devices. The upward
revision is the result of changes in the exchange rate assumptions,
but the impact of an anticipated fall in demand for electronic
components has also been factored into this projection.
Fujitsu has left its full-year projection for operating income
unchanged at 140 billion yen. Projected operating income for the
Ubiquitous Solutions segment has been revised downward by 12
billion yen on the anticipation of lower unit sales of mobile
phones and higher costs. In Technology Solutions, however,
projections for operating income have been revised upward by 3
billion yen on better anticipated results in the Services
sub-segment, which has a strong current flow of orders. In
addition, projected operating income for Device Solutions has been
revised upward by 2 billion yen on better anticipated results in
LSI devices because of the revised exchange rate assumptions, and
projections for the Other/Elimination and Corporate segment have
been revised upward to reflect an anticipated improvement of 7
billion yen in generating company-wide cost efficiencies and other
factors.
Fujitsu has left its full-year projection for net income
unchanged at 45.0 billion yen. Improvements resulting from the
foreign currency gains recorded in the third quarter and gains on
the sale of property, plant and equipment are expected to be offset
by temporary higher income tax expenses due to early termination of
Special Reconstruction Corporation Tax in the fourth quarter. The
loss stemming from the liquidation of a US subsidiary recognized as
other expense in the third quarter and the effect on lowering
income tax expenses had already been factored into the previous
projections, so it has no impact on the revisions to the
projections announced today.
FY2013 Full-Year Consolidated (Billion
Forecast Yen)
FY2012 Previous FY2013 Change Change Change
Forecast* vs. vs. (%)
(Actual) (Forecast) Previous FY2012
Forecast*
---------------------- --------- ---------- ----------- ----------- ------- ---------
Net Sales 4,381.7 4,620.0 4,680.0 60.0 298.2 6.8
---------------------- --------- ---------- ----------- ----------- ------- ---------
Operating Income 88.2 140.0 140.0 - 51.7 58.6
[Operating Income [ 2.0%] [ 3.0%] [ 3.0%] [ -%] [ 1.0%]
Margin]
---------------------- --------- ---------- ----------- ----------- ------- ---------
Other Income and
Expenses -140.3 -35.0 -45.0 -10.0 95.3 -
---------------------- --------- ---------- ----------- ----------- ------- ---------
Net Income -79.9 45.0 45.0 - 124.9 -
---------------------- --------- ---------- ----------- ----------- ------- ---------
[Operating Income by Business
Segment]
----------- -----------
Technology Solutions 173.9 207.0 210.0 3.0 36.0 20.7
--------- ---------- ----------- ----------- ------- ---------
Services 124.6 150.0 153.0 3.0 28.3 22.8
System Platforms 49.3 57.0 57.0 - 7.6 15.6
--------------------- --------- ----------
Ubiquitous Solutions 9.6 -15.0 -27.0 -12.0 -36.6 -
---------------------- --------- ---------- ----------- ----------- ------- ---------
Device Solutions -14.2 25.0 27.0 2.0 41.2 -
---------------------- --------- ---------- ----------- ----------- ------- ---------
Other/Elimination
and Corporate -81.0 -77.0 -70.0 7.0 11.0 -
---------------------- --------- ---------- ----------- ----------- ------- ---------
* Previous Forecast as of October 31, 2013.
** In accordance with the adoption of the amended IAS 19, the
figures for fiscal 2012 have been retroactively revised. As a
result, operating income for Services has been reduced by 7.0
billion yen.
To view the full announcement of the FY 2013 Third-Quarter
Financial Results, please paste the following link into your web
browser;
http://www.fujitsu.com/global/about/ir/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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