Fujitsu 1998 Annual Report Download - page 26

Fujitsu annual report 1998
24
Fujitsu annual report 1998
24
Net Sales
In fiscal 1997, the year ended March
31, 1998, consolidated net sales climbed
11% to ¥4,985.3 billion ($37,768 mil-
lion), an all-time high. These sales in-
cluded operations of the parent
company, 129 subsidiaries in Japan and
384 subsidiaries outside Japan.
Sales in Japan rose 2% to ¥3,228.3
billion ($24,457 million). Sales outside
Japan were up by 31% to ¥1,757.0 bil-
lion ($13,310 million), mostly due to
strong growth in information-related
investments in the United States. As a
result, sales outside Japan increased
from 30% to 35% as a share of the
total. Compared with the prior fiscal
year, the average yen rate fell from ¥113
to ¥123 against the U.S. dollar and
from ¥179 to ¥202 against the British
pound. Overall, changes in foreign ex-
change rates had the net effect of in-
creasing net sales by approximately
¥110.0 billion ($833 million).
Sales of information processing
systems rose 12% to ¥3,330.6 billion
($25,231 million). Major contributors
were growth in hard disk drive sales
and higher sales of services and soft-
ware in Japan and overseas.
Telecommunications sales grew by
2% to ¥871.3 billion ($6,601 million).
Sales in Japan declined as Japanese
telecommunications providers cut back
on capital spending. Sales outside Japan
increased as demand for networks rose in
the United States and as Asian nations,
particularly China, made large invest-
ments in telecommunications equip-
ment to meet expanding demand.
Sales of electronic devices were up
by 17% to ¥597.3 billion ($4,525
million), on strong demand in the
U.S. Although sales rose substantially,
earnings were impacted by a steep fall
in market prices for DRAMs.
Expenses and Net Income
Gross profit increased 8% to
¥1,466.5 billion ($11,110 million),
although the gross profit margin de-
clined from 30% to 29%. The margin
was adversely affected by lower DRAM
prices, a drop in PC prices overseas,
a loss at Amdahl Corporation and
other factors.
Selling, general and administrative
expenses increased 9% to ¥1,255.2
billion ($9,509 million), declining
from 26% to 25% as a percentage of
net sales. Progress continued to be
made in cutting expenses, while a
commitment to research and develop-
ment was maintained. Accordingly,
research and development expenditure
rose 10% to ¥387.1 billion ($2,932
million). At 8%, the proportion of net
sales was unchanged.
Financial Section
Management’s Discussion and Analysis of Operations
’98’96 ’97’95’94
3,13 9 3,25 8
3,76 2
4,50 3
4,98 5
Asia & Oceania
The Americas
Africa & the Middle East
Europe
Japan
Net Sales by Customers’
Geographic Location
(¥ Billion) Years ended March 31
’98’96 ’97’95’94
3,13 9 3,25 8
3,76 2
4,50 3
4,98 5
Electronic Devices
Telecommunications
Other Operations
Information Processing
Net Sales by Main Product
(¥ Billion) Years ended March 31