Two of Japan's largest electronics companies have reported losses
for the last three months of 2001.
Reporting earnings for the third fiscal quarter, Fujitsu said its
consolidated net loss hit ¥106.1bn (£562.8m) compared to a loss of
¥69.0bn in the same period a year earlier. Toshiba said its
consolidated net losses were ¥84.9bn (£450.2m) compared to a profit
of ¥11.1bn a year earlier. Both companies' figures are
unaudited.
The companies blamed the terrorist attacks of 11 September for
worsening an already-bleak economic situation. Continuing cutbacks
in corporate spending on information technology products compounded
what Fujitsu called "unprecedented poor conditions in the
semiconductor market" to lead the companies into loss.
Fujitsu saw double-digit percentage drops in sales at three of its
four main divisions: electronic devices, which led the declines
with a 41% year-on-year fall, telecommunications and information
processing. The only bright spot was the company's software and
systems business, where sales rose 3%, and which continues to
benefit from increased sales of outsourcing services in
Japan.
At Toshiba, the company saw business decline in all of its business
areas. Worst performing was the company's semiconductor and
electronic-device business, which saw sales drop by 31.4% during
the period and losses of ¥46.6bn. Its best-performing sector was
the digital media division, where sales dropped 1.5%, hit by lower
demand for personal computers but largely offset by increasing
demand for optical disk drives and consumer audio-visual
equipment.
Consolidated net sales at both companies dropped 13% on the same
period a year ago - to ¥1.1 trillion at Fujitsu and to ¥1.2
trillion at Toshiba.
With the poor third-quarter results as a backdrop, both companies
also lowered their expectations for the full fiscal year, which
ends on March 31. Fujitsu said it now expects consolidated net
sales to be ¥5.0trn, a drop from its previous prediction of ¥5.2tn,
while net losses are now expected to hit ¥380bn, up from ¥310bn.
Toshiba cut its consolidated net sales forecast from ¥5.46trn to
¥5.36 trn and also widened its net-loss forecast, from ¥200bn to
¥260bn.
The results are in stark contrast to those of Sony, which announced
its third-quarter results on Friday. Buoyed by sales of its
PlayStation 2 console in the US market in the run-up to Christmas
and the weakening Japanese currency, which increases the yen value
of overseas sales, the company reported its largest quarterly
consolidated sales in its history.
But Sony's performance may be the exception. With none of the other
major electronics makers in the game console business and with such
a large portion of sales taking place overseas, they are not likely
to benefit to the extent that Sony managed.