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Fujitsu swings back into profit for 2003

Fujitsu has pulled back from large losses in the previous two financial years to report a profit for 2003, helped by strong demand in digital electronics markets around the world.

Fujitsu reported consolidated net income for its 2003 financial year of $470m (£267m), its first profit since 2000. The company had seen a $1.1bn loss in 2002, after a $3.5bn loss in 2001.

Consolidated operating income rose 49.7% from 2002 to $1.4bn in 2003.

Global demand for electronic products brought an 18.7% increase in consolidated sales in Fujitsu's Electronic Devices division, pushing sales to $6.6bn. Operating income in this area rose from a loss of $285m last year to a profit of 248m this year.

The healthy market for outsourcing and IT services in Japan and overseas saw sales in Software and Services rise 3.4% to $18.8bn.

However, price competition and reduced profitability in some Japanese contracts meant that operating income for the division fell 21.4% to $1.25bn.

In 2004, digital electronics products will continue to show robust growth and the pick up in corporate IT spending will continue.

In its earnings forecast for 2004, the company predicted that this improved market, and increased efficiency and cost-cutting in the company, will lead net income to grow 40.8% to $632m and operating income to rise 33% to $1.8bn.

Gillian Law writes for IDG News Service


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