Fujitsu Q2 flat after euro woes

Europe's continuing economic crisis hit Japanese vendor in the pocket as sales of its hardware and devices decline in the region

The continuing economic crisis in Europe contributed to a flat second-quarter set of results for Fujitsu as it saw net profit drop 13.4 billion yen.

Q2 2012 revenue came to 1,114.4bn yen ($14.28m), essentially the same as Q2 2011.

Sales in Japan rose by 4.5 per cent, but sales outside Japan fell by 6.4 per cent, the vendor revealed. Infrastructure service sales were lower, primarily in Europe due to the impact of the economic crisis. The vendor also saw sales of optical transmission systems to North America, and UNIX servers, decrease.

For the first half of the fiscal year, the firm recorded a net loss of 11 billion yen, a deterioration of 16.8 billion yen when compared with the first half of fiscal 2011.

Due to continued weak demand for LSI devices and electronic components as well as decreased sales in services outside Japan, full-year sales projections have been revised downward by 110 billion yen to 4,420 billion yen.

In terms of profit, full-year projections have been revised downward by 35 billion yen, to 100 billion yen.

Masami Yamamoto, president of Fujitsu, said: “In the second quarter, we were able to see solid performance supported by favourable sales in Japan of our technology solutions and smartphone business.

"We revised our full-year forecasts downward as the economy has yet to fully recover. Nonetheless, we will continue to accelerate structural reforms and bolster a framework whereby Fujitsu can fully contribute to our customers as their global IT partner."