Fujitsu reports Y20.4 billion net loss in April-June

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Fujitsu Ltd on Thursday reported a net loss of 20.4 billion yen in the April-June quarter due to the soaring yen and serious damage to its production facilities caused by the March 11 quake disaster. The company, which provides information technology services and also makes computers and cellphones, booked a net loss of 20.4 billion yen, a sharp drop from net profit of 1.6 billion yen in the same period last year.

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The operating loss stood at 17.1 billion yen, compared with operating profit of 10 billion a year ago. Sales fell 5.8% on-year to 986.1 billion.

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Fujitsu’s earnings fell as the powerful earthquake and tsunami heavily damaged supply chains in Japan, including Fujitsu’s.

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Sales and profits fell “mainly due to earthquake-related delays to contracts, deliveries and the procurement of certain parts and components,” Fujitsu said.

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The company booked a 7.5 billion yen special loss in the quarter, primarily to cover overhead expenses incurred while its factories were closed after the quake.

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The company was also hit by a high yen, which it said reduced sales by 17 billion yen, despite dollar-based profit increases in the US market.

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Against the U.S. currency, the yen rose some 10 yen on-year to 82, while the euro was nearly flat at 117 yen, Fujitsu said.

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For the rest of the fiscal year, however, the company expected sales and profit growth in its domestic services business and PCs and projected higher annual earnings.

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“The impact of the Great East Japan Earthquake on the procurement of raw materials and components has for the most part abated,” company president Masami Yamamoto said in a statement.

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Fujitsu predicted a net profit of 60 billion yen and operating profit of 135 billion yen for the year to March 2012. Annual sales are expected to grow 1.6% to 4.6 trillion yen.

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