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Fujitsu falls into red in FY 2008, expects recovery in FY 2009 [Kyodo News International, Tokyo](Kyodo News International (Tokyo, Japan) Via Acquire Media NewsEdge) Apr. 30--TOKYO -- Fujitsu Ltd. said Thursday it fell into the red for the first time in six years with a net group loss of 112.39 billion yen in fiscal 2008, a turnaround from a profit of 48.11 billion yen a year earlier, due to its flagging semiconductor business and restructuring costs. For the current fiscal year, however, Fujitsu is hoping to return to the black with a group net profit of 20 billion yen while projecting operating profit to grow 16.3 percent to 80 billion yen on sales of 4.8 trillion yen, up 2.3 percent. Fujitsu President Kuniaki Nozoe told a press conference that the semiconductor business which fared worse than expected is "the biggest challenge" for the electronics maker. "We would like to do what is necessary in fiscal 2009 to become profitable in our semiconductor business in fiscal 2010," Nozoe said, adding that the company will continue to push for reforms. As part of its restructuring, Fujitsu said its subsidiary Fujitsu Microelectronics Ltd. will outsource production of chips using cutting-edge technology to Taiwan Semiconductor Manufacturing Company Ltd. In fiscal 2008 that ended in March, the intensification of the global economic slowdown in the second half dented demand for its products, such as personal computers, hard disk drives and cellphones, Fujitsu said. The Japanese company reported an operating profit of 68.77 billion yen in fiscal 2008, down 66.5 percent from the previous year, on sales of 4.69 trillion yen, down 12 percent. The sharp appreciation of the yen also eroded its profits made overseas. |