Friday 07 December 2018

*NEW RESEARCH* Fujitsu: Better matched to market needs?

Fujitsu released its H1 results at the end of October, and at the same time outlined a restructure of the organisation to “transform its growth strategy as soon as possible” (see more here Fujitsu restructures for growth).

In the first six months of the year, the company’s Services business at the global level was roughly in-line with last year at 1,207.5bn Yen. However, outside of Japan, the “weak performance” continued (revenue was down 2.8%) withfuj both the US and Europe being called out in the financial report. The operating margin in the Services business did, however, increase, but this was primarily due to the impact of higher revenue in Japan.

In spite of what continues to be a muted performance outside of Japan, Fujitsu recognises that Services (and more specifically what it calls Connected Services to create data-driven intelligence for its customers) are where its future good fortunes lay. To that end, the firm has been undertaking a radical strategy to strip back its hardware businesses, including creating a JV with Lenovo for back-end manufacturing, and selling its LSI chip business. As a measure of the significance of these moves, the activity has resulted in a reduction in its revenue line of several billion pounds over the past 18 months or so. Fujitsu is also set to close its manufacturing plant in Germany, centralising all manufacturing and R&D in Japan.

In this research note we look at some of the other adaptions the company is making and what this means for its position and performance. Subscribers can read it here: Fujitsu H1: Better matched to market needs?

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Posted by HotViews Editor at '09:56' - Tagged: results   strategy   digital