Fujitsu Ltd., Japan’s biggest provider of computer services, fell to the lowest level in almost 34 years in Tokyo trading after posting a wider-than-estimated first-quarter loss.
Fujitsu dropped 12 percent to close at 295 yen, the lowest level since September 1978, on the Tokyo Stock Exchange. Japan’s benchmark Nikkei 225 Stock Average rose 0.8 percent.
The maker of the K super computer was hurt by falling overseas sales in its solutions business, which includes servers, because of a worsening economy in Europe and a slowdown in the U.S., Fujitsu said July 27 after the market’s close. The Tokyo-based company also said it had an operating loss of 3.6 billion yen ($46 million) in the devices business on reduced demand for its system chips used in televisions and servers.
“There is a risk of worsening profitability from services,” Hideyuki Maekawa, a Tokyo-based analyst at Credit Suisse Group AG, said a note to clients today. “We are concerned about the lack of transparency on how the company will reduce losses in its hardware business.
Fujitsu reported a net loss of 23.8 billion yen for the three months ended June 30. The company was expected to post a loss of 12.4 billion yen, according to the average of five analysts’ estimates compiled by Bloomberg. The company’s operating loss, or revenue minus the cost of good sold and administrative expenses, totaled 25 billion yen, and sales fell 2.9 percent to 957.4 billion yen.