Fujitsu has issued a shock profit warning for its year
end results, and its overseas subsidiaries - including Fujitsu
Services in the UK - are being blamed.
Fujitsu Services, which
is a major supplier to the NHS National Programme for IT, as well
as an outsourcer for companies like Marks and Spencer, will see its
asset and share value devalued by its Japanese parent.
Despite its trading performance reportedly standing up well,
Fujitsu said its book value is too high and will be reduced. The
reduction, along with changes made to other overseas operations
will lead to Fujitsu making a £1.2bn loss, instead of a previously
forecast profit.
Fujitsu had originally planned to spin off Fujitsu Services in
an IPO, but these plans have now been shelved.
Fujitsu Services, previously known as ICL before Fujitsu took a
majority stake in the firm and changed its name in 2002, does work
on a number of other UK government contracts.
The firm’s Manchester office is also facing concerted industrial
action by employees, who are working to rule and taking
intermittent strike action over pay, union rights and redundancy
conditions.
Fujitsu also blamed poor performances from its US and UK
telecommunications businesses for the losses.
Fujitsu Services staff walk out again
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