Fujitsu brings in 88.4 billion yen profit over 2016 - with further growth expected
Fujitsu recently announced profit for the year of 2016, coming in at a whopping 88.4 billion yen, representing growth of 1.7 billion yen from fiscal 2015.
Consolidated revenue for fiscal 2016 was 4,509.6 billion yen, and excluding the impact of foreign exchange movements, revenue was essentially unchanged from 2015.
However, there were areas within the revenue that did change. Revenue from LSI devices used in smartphones declined on weak demand, while revenue in the Services sub-segment remained strong, both in system integration and infrastructure services, and there was an increase in revenue from enterprise PCs and the Mobilewear sub-segment.
Fujitsu reported an operating profit of 128.8 billion, which was up 8.2 billion yen from fiscal 2015.
In the Ubiquitous Solutions segment, in addition to the beneficial impact of higher revenue from enterprise PCs and from the Mobilewear sub-segment, operating profit also improved on cost reductions and cost efficiencies in PCs and mobile phones.
According to Fujitsu, 44.7 billion yen was recorded in business model transformation expenses in fiscal 2016, an increase of 3.1 billion yen in fiscal 2015.
Of that amount for fiscal 2016, 34.0 billion yen was for structural reform expenses outside of Japan for greater efficiencies and a shift toward digital business (of which 29.4 billion yen was for a shift toward digital business in Europe), 3.9 billion yen was for restructuring expenses for datacenters in Japan, and 6.6 billion yen was for restructuring expenses for production facilities both in and outside of Japan.
Net financial expenses came in at 0.6 billion yen, which was an improvement of 6.5 yen from the previous fiscal year.
Income from investments accounted for using the equity method was 6.9 billion yen, representing a decline of 11.5 billion yen from fiscal 2015.
Profit for the year before income taxes was 135.1 billion yen, an increase of 3.3 billion yen over the previous fiscal year.
And projections for the year ahead? Fujitsu is projecting revenue of 4,100 billion yen, with revenue expected to be essentially unchanged from fiscal 2016.
The projected profit for the year attributable to owners of the parent is 145.0 billion yen, up 56.5 billion yen from fiscal 2016.