FIRST-HALF DISMAY

Fujitsu reports 147 billion yen loss

Fujitsu Ltd. announced Tuesday group net losses of 147.4 billion yen during the first half of the 2002 business year, which ended Sept. 30, blaming the losses on restructuring efforts and expenses incurred in the recall of a product.

The group’s losses for the half greatly surpassed the 40 billion yen losses projected in July. The group logged 174.7 billion yen in net losses for the last financial year.

The nation’s largest computer maker explained that the problem was primarily a result of special losses of some 150 billion yen incurred in restructuring efforts.

Citing the need to adapt to structural changes taking place in the IT sector, the firm said its restructuring measures include removing 7,100 workers — 4 percent of its entire group workforce — from its payroll and reassigning an additional 1,900 employees to other workplaces.

Around 5,400 of those to be sacked are working in Japan. The measures are scheduled to be completed by the end of December, according to the company officials.

The firm also incurred a one-time loss of 25 billion yen from the recall of one of its hard-disc drives, reportedly involving 10 million units, following the discovery of defective components.

Fujitsu’s group sales for the half-year period dropped 9.9 percent from a year earlier to 2.15 trillion yen.

The firm blamed the problem on a sharp fall in demand from telecommunications companies abroad, especially those in the U.S., for its software and platform services, which include communications infrastructure.

However, the firm cut operating losses by more than half to 23.8 billion yen.

The firm, which earlier announced that it expected the group’s net earnings for the entire business year through March to break even, revised that projection to net losses of 110 billion yen. Last year, net losses came to 382.5 billion yen.

Fujitsu also reduced its revenue target by 200 billion yen to 4.8 trillion yen from its earlier forecast in July, citing increasing uncertainty surrounding the global economic situation.