Tokyo: Japan’s Fujitsu Ltd. said Thursday that it suffered a 112.4 billion yen ($1.15 billion) net loss for the business year through March due to the global economic crisis.
The loss, which compares with a 48.1 billion yen profit a year earlier, is more than twice as big as the company’s own forecast. In addition to weak sales, restructuring costs weighed heavily on the bottom line.
The computer giant’s operating profit fell 66.5% from a year earlier to 68.77 billion yen as revenue slid 12% to 4.69 trillion yen.
A stronger yen trimmed earnings, while revenue from IT services and corporate customers remained stagnant, it said.
Fujitsu said its business was affected by a deepening worldwide economic recession.
“In Japan, conditions in the corporate sector, in particular, significantly deteriorated as the sharp decline in exports resulted in a prolongation of the recession,” it added.
The company expects to return to the black in the current business year, projecting a net profit of 20 billion yen, an operating profit of 80 billion yen and revenue of 4.8 trillion yen.
“Conditions are expected to improve in the second half of the fiscal year, but the recovery is expected to be weak,” Fujitsu said.