Fujitsu Ltd reported a 40 percent fall in quarterly profit but it forecast that its annual profit would more than double this year.

Fujitsu, which competes with International Business Machines Corp and Electronic Data Systems Corp in IT services, aims to grow its consulting business overseas even as it remains shackled by its loss-making system chips and hard disk drives.

The company, which also makes computers and mobile phones, said it expected its net profit to rise to 100 billion yen ($967.3 million) in the year that started in April, up from 48.1 billion yen in the year ended in March and beating a mean estimate of 88.36 billion yen by 13 analysts.

It expects gains in IT outsourcing and its consulting business to outweigh the effects of a strong yen, which it thinks will drag down its profit by 20 billion yen, and additional pension-related costs.

Fujitsu's hard drive and system chip operations will swing to an annual profit of several billion yen each from a loss of several billion yen in the year ended March 31

In January-March, Fujitsu posted a net profit of 51.9 billion yen against a profit of 86.4 billion yen for the same period a year earlier. It was hit hard in the quarter as it posted appraisal losses on its securities holdings and wrote down the value of some of its microchip-making equipment.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved