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Fujitsu annual report 1998
26
Fujitsu annual report 1998
26
Japan
Sales in Japan were ¥4,010.9 billion
($30,385 million) and operating in-
come was ¥219.0 billion ($1,659 mil-
lion). Sales were impacted by an
extremely difficult operating environ-
ment as Japan’s economy stagnated.
In addition, telecommunications
providers limited capital spending and
DRAM prices fell sharply. Sales and
earnings were aided by a large increase
in sales of hard disk drives and growth
in services and software.
Europe
Sales in Europe totaled ¥826.6
billion ($6,262 million) and operating
income was ¥3.5 billion ($27 million).
Healthy demand for information-
related systems supported growth at
ICL PLC and hard-disk drive sales
subsidiaries. However, semiconductor
subsidiaries posted losses.
The Americas
In the Americas, sales were
¥511.6 billion ($3,876 million), but
the region posted an operating loss of
¥38.1 billion ($288 million). Sales
benefited from expanding demand for
networks, rising investments in vari-
ous information-related equipment
and strong demand for electronic
devices. The consolidation of Amdahl
Corporation in the second half of the
fiscal year further contributed to the
increase in sales. The operating loss
chiefly reflects losses at Amdahl, semi-
conductor subsidiaries and PC sales
subsidiaries.
Others
Sales in other geographic regions
amounted to ¥523.8 billion ($3,968
million) and operating income was
¥26.6 billion ($201 million). Demand
for telecommunications systems was
especially strong in China and other
Asian nations. Additionally, robust
PC demand in Europe and the
Americas led to higher output at fac-
tories in the Philippines, Thailand
and Vietnam.
Capital Expenditures
Fiscal 1997 capital expenditures
totaled ¥435.7 billion ($3,301 mil-
lion), about the same as in the prior
year. This represents expenditures of
¥164.3 billion ($1,244 million) for in-
formation processing, ¥50.0 billion
($378 million) for telecommunica-
tions, ¥206.2 billion ($1,562 million)
for electronic devices, and ¥15.2 billion
Capital Expenditure
(¥ Billion) Years ended March 31
’98’96 ’97’95’94
18 5
23 5
40 4
43 6 43 6
Electronic Devices
Telecommunications
Other Operations
Information Processing
Capital Expenditure
(¥ Billion) Years ended March 31
1994 1995 1996 1997 1998
Information Processing . . . . . . . . . 60 78 121 151 165
Telecommunications . . . . . . . . . . . 20 24 32 42 50
Electronic Devices . . . . . . . . . . . . . 83 121 234 220 206
Other Operations . . . . . . . . . . . . . 22 12 17 23 15
Total . . . . . . . . . . . . . . . . . . . . . 185 235 404 436 436
Financial Section
Management’s Discussion and Analysis of Operations