Fujitsu Cuts Full-Year Profit Target 42% After Thai Floods Disrupt Output
Fujitsu Ltd. (6702), Japan’s largest computer services provider, cut its profit forecast 42 percent as floods in Thailand disrupted output of computer components.
Net income may be 35 billion yen ($459 million) for the fiscal year ending March 31, compared with an earlier estimate of 60 billion yen, the Tokyo-based company said in a statement today. The average of 17 analyst estimates compiled by Bloomberg was for about 54 billion yen.
The digital device maker’s weakened outlook comes after Tokyo-based rival NEC Corp. (6701) said last week it will cut 10,000 jobs after slower global growth cut demand for products including computers and wireless gear. Fujitsu President Masami Yamamoto said last month that the company may miss its target to sell 6.6 million personal computers this fiscal year after floods in Thailand delayed supplies of hard-disk drives.
Fujitsu also trimmed its sales estimate about 1 percent to 4.49 trillion yen from 4.54 trillion yen. Operating profit will be about 100 billion yen, compared with the previous forecast for 135 billion yen.
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