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Tuesday 19 May 2020

*UKHotViewsExtra* Fujitsu FY19: UK's improved revenue mix

fujFujitsu's FY19 figures show global revenue was down 2.4% to 3,857.8 Yen. The firm “exceeded” profit targets in the Services business, excluding the impact of “business model transformation expenses”. Higher bonuses also impacted operating profitability. The firm is targeting a medium-term operating margin of 10% (it was 5.9% in FY19) and still believes this is achievable, even under the current circumstances.

The firm says COVID-19 has caused some supply chain disruptions, lower operating levels in manufacturing facilities, and logistics issues, but these are “more or less beginning to be resolved”. Takeshi Isobe, Corporate Executive Officer and CFO, says: “Even if COVID-19 can be contained relatively quickly, we expect that there will of course be large changes in the ways people consume and consumption trends, but also in the ways that business is conducted.”

In terms of guidance for FY20, Fujitsu is withholding that (like many others) “because it is difficult to reasonably estimate the results at this time due to the new coronavirus infection”. It plans to provide the forecast as soon as possible.

In Europe, where Infrastructure Services is the key part of the portfolio, Isobe says there is concern “that pressure to reduce costs may intensify”. However, in Consulting the firm is seeing “strong demand for proposals relating to how businesses should transform themselves, both before and after the impact of COVID-19”. In all, the sense is that rather than being an area of risk, “this may be more of a demand- driven area”.

 Specifically in the UK, Fujitsu has been laser focused on supporting its existing client base…. More…..

Posted by Kate Hanaghan at '08:53' - Tagged: results   cloud   cyber   data