Annex Bulletin 2007-18 April 28, 2007
Excerpts from CONFIDENTIAL edition (Annex clients click here for FULL version)
Recent... 
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JAPANESE COMPANIES
Updated 4/28/07, 7:30PM PDT
Analysis of Fujitsu's Fiscal Year 2007 Business Results
"Best Ever" Profit Year Comes Up Short
Big One-Time Gain on Securities Sale Masks Profit Decline
ST. LOUIS, Apr 28 - At a first glance, it looked like the fiscal year 2007, ended Mar 31, was Fujitsu's "best ever" profit year. The $856 million-net profit seemed 41% higher than the company's bottom line a year ago. But there is a catch. A big gain from a one-time sale of securities (Fanuc, $627million pretax; $346 million after-tax est.) padded an otherwise lower net income (see the green bar on right thumbnail chart). Which is how an apparent 41% net profit surge became a 16% decline, on an apples-to-apples basis.
[charts here]
Business Segment Analysis
Geographies. Fujitsu's global revenues were up 6% in yen, but edged up only 1% in U.S. dollars to $42.6 billion. The Americas region reported the best growth rate (up 16% to $3.7 billion), followed by Europe (up 11% to $6.2 billion). The Asia/Pacific region was up 7% to $6.7 billion, while the business in Fujitsu's biggest domestic Japanese market shrank by 2% to $34.1 billion.
[snip]
Hardware. Japan's dominance is even more pronounced in the systems hardware business. In fact, for Fujitsu's efforts to become a truly global competitor, the overseas vs. Japanese shares of revenues have not changed much in the last 22 years (see the right thumbnail chart).
[snip]
Outlook
Fujitsu expect its revenue in the current fiscal year to grow 6% to 5,400 billion yen (about $45 billion at the current exchange rate). The company said its services business and profits should again grow both in domestic and overseas markets.
[snip]
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Volume XXIII, Annex Bulletin
2007-18 Bob Djurdjevic, Editor 8183 E Mountain Spring Rd, Scottsdale, Arizona 85255 The copyright-protected information contained in the ANNEX BULLETINS is part of the Comprehensive Market Service (CMS). It is intended for the exclusive use by those who have contracted for the entire CMS service. |
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