Fujitsu 2002 Annual Report Download - page 22

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Due to these factors, we posted an operating loss for
fiscal 2001 of ¥74.4 billion, down ¥318.4 billion from the
previous year’s operating profit. Our operating margin was
- 1.5%.
Other Income and Expenses, Net Income
Other income and expenses amounted to –¥520.3 billion,
as expenses increased by ¥433.8 billion over the previous
year.
Of this amount, charges to cover a deficit in pension lia-
bilities rose by ¥13.2 billion, to ¥35.7 billion, as a result of
lower prices for stock assets. A deterioration in operating
results caused equity in earnings of affiliated companies to
decline by ¥10.7 billion, to ¥2.6 billion.
We designated fiscal 2001 as a year of thorough struc-
tural reform for the Fujitsu Group. We restructured in
every business segment, and related charges totaled
¥417.0 billion, an increase of ¥314.5 billion over the previ-
ous year. Major items in the overall restructuring charge
are broken out below.
Restructuring Charges by Business Segment (¥ Billion)
Year ended March 31 2002
Services and Software................................................................ ¥ 42
Information Processing.............................................................. 100
Telecommunications................................................................... 65
Electronic Devices........................................................................ 208
Consolidated restructuring charge............................................. ¥417
Services and Software: Reorganized ICL of the U.K.
(renamed “Fujitsu Services
Holdings PLC” as of April 2002)
and DMR Consulting of the U.S.
(renamed “Fujitsu Consulting
Inc.” as of April 2002) as part of
our global push in IT services.
Information Processing: Exited business of small form
factor hard disk drives for desk-
top PCs; restructured manufac-
turing operations for servers and
storage systems.
Telecommunications: Exited North American PBX
business and implemented strat-
egy to cope with decline in
North American optical trans-
mission market.
Electronic Devices: Closed North American semi-
conductor plant and reorganized
semiconductor production oper-
ations in Japan.
Also in the category of other income and expenses was
a ¥20.5 billion valuation loss on marketable securities as a
result of stock price declines (¥9.9 billion greater than the
previous year’s valuation loss).
As a result of these factors, the net loss before income
taxes and minority interests totaled ¥594.7 billion, a rever-
sal of ¥752.2 billion from the previous year. After factoring
in income taxes of –¥199.4 billion and minority interests of
–¥12.7 billion, the net loss was ¥382.5 billion, a decline of
¥391.0 billion in income from the previous year. The net
loss per share was ¥193.0.
Segment Information
Business Segment Information
Services and Software
Fiscal 2001 sales of services and software rose 5.5% in
Japan, to ¥1,534.5 billion, but declined by 1.5% in over-
seas markets, to ¥551.3 billion. Overall sales were
¥2,085.8 billion, an increase of 3.5% over the previous
year. Sales of services in Japan rose steadily, benefiting
from brighter prospects for expansion in the IT services
market from e-Japan-related key projects, as well as the
enhancement of our operational base. Solution services,
including supply chain management and other services
aimed at helping customers improve the efficiency of their
enterprise operations — from parts procurement through
manufacturing, distribution and sales — met with favorable
demand. In infrastructure services, sales of network-deliv-
ered outsourcing services enjoyed solid growth. Overseas,
however, cutbacks in corporate IT spending in the U.S. and
Europe resulted in a decline in sales, holding overall sales
of services to a small gain.
Nevertheless, thanks to higher domestic sales of ser-
vices and efficiency gains, as well as progress from the
restructuring of overseas subsidiaries, operating income in
this segment increased by 22.6%, to ¥157.8 billion.
FINANCIAL
SECTION
Operating Income (¥ Billion)
Ratio of Operating Income to Net Sales (%)
(Years ended March 31)