Fujitsu forecasts £1.2bn losses

Fujitsu has lowered its forecast for its 2006 financial year, ending 31 March, to a loss of Yen275bn (£1.2bn), from an earlier projected profit of Yen55bn (£238m).

Share

Fujitsu has lowered its forecast for its 2006 financial year, ending 31 March, to a loss of Yen275bn (£1.2bn), from an earlier projected profit of Yen55bn (£238m).

The company's sales forecast remained unchanged. The problems do not stem from its main business, Fujitsu said, although it acknowledged a weak market for LSI (large scale integration) chips, slow PC sales and a delayed recovery in the optical transmission systems business.

Instead, the revision is due to a Yen350bn (£1.5bn) downward revaluation of its shareholdings in overseas subsidiaries and affiliates. By revaluing its holdings, Fujitsu has to take an accounting charge against its earnings.

Without the charge, Fujitsu said it would have turned a profit for the year, and it anticipates stable profits going forward, it said.

The projected loss for 2006 compares to a net profit Yen17.4bn (£75m) in 2005, on sales of Yen2,850bn (£12.4bn). The company's 2006 sales forecast remains Yen2,950bn (£12.8bn), it said.

Find your next job with computerworld UK jobs