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.
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