Fujitsu Limited

euro adhoc: Fujitsu Limited
Quarterly or Semiannual Financial Statements
Fujitsu Reports FY2003 First-Half Financial Results for first-half fiscal period, ended September 30, 2003 - Part 2 (E)

---------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc.   The issuer is responsible for the content of this announcement. ---------------------------------------------------------------------

Part 2

Consolidated Business Segment Information (Three months     ended September 30)  

a. Net Sales                                                                        
                                                      Yen                                  U.S.    
                                                 (millions)                          Dollars  
                                                                                         (millions)

                                                 2nd              2nd                         2nd    
                                              Quarter        Quarter                  Quarter  
                                                2003            2002        Change      2003
                                                                                  (%)

Software      Unaffiliated        Y 525,979    Y 537,102  -2.1    $ 4,738
&                 Customers            
Services      Interseg-                                                                        
                  ment                         19,942         19,771  +0.9          180
                      Total                Y 545,921    Y 556,873  -2.0    $ 4,918  

Platforms    Unaffiliated          411,572        390,622  +5.4        3,708  
                  Customers                                                          
                  Interseg-                 62,467         61,203  +2.1          563  
                  ment                                    
                      Total                  474,039        451,825  +4.9        4,271

Electronic  Unaffiliated          172,100        147,047  +17.0      1,551  
Devices        Customers                                                          
                  Interseg-                 16,272         18,633  -12.7         146  
                  ment                                                                  
                      Total                  188,372        165,680  +13.7      1,697  

Financing    Unaffiliated            29,596         30,306    -2.3         267  
                  Customers                                                          
                  Interseg-                  2,715          2,446  +11.0          24  
                  ment                                                                    
                      Total                    32,311         32,752    -1.3         291  

Other          Unaffiliated            63,949         62,315    +2.6         576  
Operations  Customers                                                          
                  Interseg-                 35,210         36,755    -4.2         317  
                  ment                                                                      
                      Total                    99,159         99,070    +0.1         893  

Eliminations                            (136,606)    (138,808)        -    (1,230)

                      Total            Y 1,203,196 Y 1,167,392    +3.1  $10,840  

b. Operating Income (Loss)    

                                          Yen                                      U.S.      
                                                                                  Dollars    
                                      (millions)                          (millions)

                                  2nd            2nd            Change          2nd      
                                Quarter      Quarter        (Million      Quarter    
                                 2003            2002            Yen)            2003      

Software &              Y 32,525      Y 50,635        -18,110          $293  
Services                                                                                
(Operating                  (6.0%)         (9.1%)        (-3.1%)                    
Margin)      

Platforms                 (1,286)        (17,829)      +16,543            (12)
                              ((0.3%))        ((3.9%))      (+3.6%)

Electronic                 4,972         (15,668)    +20,640                45  
Devices                      (2.6%)        ((9.5%))  (+12.1%)  

Financing                  1,033            1,043          -10                  9  
                                 (3.2%)          (3.2%)         (-%)  

Other                         3,011            4,383      -1,372                 27  
Operations                 (3.0%)          (4.4%)    (-1.4%)    

Eliminations          (20,359)        (16,772)    -3,587            (183)

  Total                 Y 19,896         Y 5,792    +14,104            $179  
                                 (1.7%)          (0.5%)    (+1.2%)                    

c. Sales to Unaffiliated Customers    

                                                         Yen                         U.S.    
                                                                                    Dollars  
                                                    (billions)              (millions)

                                              2nd         2nd                      2nd      
                                         Quarter      Quarter              Quarter  
                                            2003         2002    Change      2003      
                                                                         (%)  

Software        Japan         Y 405.3      Y 411.0    -1.4      $3,652  
& Services    Overseas        120.5         126.0    -4.4        1,086  
                        Total      Y 525.9      Y 537.1    -2.1      $4,738  

Platforms      Japan            288.9         273.9    +5.5        2,603  
                    Overseas        122.6         116.6    +5.1        1,105  
                        Total         411.5         390.6    +5.4        3,708  

Electronic    Japan              89.0          77.4  +15.0          802
Devices         Overseas         83.0          69.6  +19.3          749  
                        Total         172.1         147.0  +17.0        1,551

Financing      Japan              29.5          30.3    -2.3          267  
                    Overseas              -                -         -              -
                        Total          29.5          30.3    -2.3          267  

Other            Japan              51.9          49.4    +4.9          468  
Operations    Overseas         12.0          12.8    -6.3          108  
                        Total          63.9          62.3    +2.6          576  

  Total         Japan         Y 864.8      Y 842.1    +2.7      $7,792  
                    Overseas        338.3         325.2    +4.0        3,048  

                        Total  Y 1,203.1  Y 1,167.3    +3.1    $10,840  

d. Sales to Unaffiliated Customers by Products and Services      

                                                          Yen                            U.S.    
                                                                                         Dollars  
                                                    (billions)                    (millions)

                                                    2nd         2nd                            
                                                 Quarter    Quarter                
                                                    2003        2002        Change    2003
                                                                                    (%)  

Software    Solutions/SI          Y 258.9      Y 257.3      +0.6    $2,333  
&                Infrastructure          267.0         279.8      -4.6      2,405  
Services    Services                                                          
                    Total                  Y 525.9      Y 537.1      -2.1    $4,738  

Platforms  Servers                    Y 88.8        Y 98.0      -9.4        $800  
                 Mobile                                                                
                 Infrastructure/                                                      
                 IP Network                  43.5          42.1      +3.3         392  
                 Transmission                44.2          52.1    -15.2         398  
                 Equipment                                                        
                 PCs & Mobile              182.0         157.2    +15.8      1,640  
                 Telephones                                                        
                 HDDs                            53.0          41.2    +28.6         478  

                    Total                  Y 411.5      Y 390.6      +5.4    $3,708  

Electronic Semiconductors         Y 92.0        Y 86.3      +6.6        $829
Devices      Others                         80.1          60.7    +32.0         722  
                    Total                  Y 172.1      Y 147.0    +17.0    $1,551  

Consolidated Statements of Operations (Six months ended September 30)

                                              Yen                                      U.S.      
                                                                                      Dollars    
                                         (millions)                         (millions)
                                 1st Half        1st Half                  1st Half  
                                    2003              2002         Change      2003      
                                                                          (%)  

  Net sales            Y 2,141,934  Y 2,150,386    -0.4      $19,297  

  Operating costs                                                                    
  and expenses:                                                                        
  Cost of goods         1,576,454      1,571,934    +0.3        14,202  
  sold                                                                                  
  Selling, general                                                                  
  and                                                                                        
  administrative          583,470         601,730    -3.0         5,257  
  expenses                                                                                
                                 2,159,924      2,173,664                  19,459  

  Operating income        (17,990)        (23,278)        -          (162)
  (loss)                                                                                  
  Other income                                                                        
  (expenses):                                                                          
  Net interest*              (7,755)        (11,327)                      (70)
  Equity in                                                                              
  earnings of                                                                          
  affiliated                        418          (2,090)                         4  
  companies, net                                                                      
  Amortization of                                                                    
  unrecognized                                                                        
  obligation                                                                            
  for retirement          (28,938)        (21,938)                    (261)
  benefits                                                                                
  Casualty loss**          (4,700)                 -                        (42)
  Restructuring              (4,674)      (150,000)                      (42)
  charges                                                                                
  Cost of                                -         (25,000)                         -
  corrective                                                                            
  measures for                                                                        
  products***                                                                          
  Valuation loss                    -          (7,637)                         -
  on marketable                                                                        
  securities                                                                            
  Gain on sales of         34,470          27,980                        311  
  marketable                                                                            
  securities****                                                                      
  Other, net                 (21,913)         (6,811)                    (198)
                                    (33,092)      (196,823)         -         (298)

  Income (Loss)                                                                        
  before income                                                                        
  taxes                                                                                    
  and minority              (51,082)    (220,101)         -          (460)
  interests                                                                          
  Income taxes                 3,787        (70,141)                         34  
  Minority                      (3,693)         2,522                         (34)
  interests                                                                              
  Net income              Y (58,562) Y (147,438)         -        $ (528)
  (loss)                                                        

  Note: All yen figures throughout these statements have      
  been converted to U.S. dollars for convenience only          
  at a uniform rate of $1=111 yen.  

  *Net interest consists of interest income, dividend          
  income and interest charges.                                                

  **Casualty loss refers to repair expenses incurred to        
  cover damages to property as a result of the earthquake    
  that occurred off the coast of Miyagi prefecture, Japan,  
  on May 26th, 2003.                                                                

  ***Cost of corrective measures for products refers to        
  certain small form factor hard disk drives.                        

  ****Gain on sales of marketable securities in first half  
  of FY2003 refers to 27,632 million yen of gain on sales    
  of affiliates' stock and 6,838 million yen on sales of      
  available-for-sale securities.                                            

  Consolidated Business Segment Information (Six months        
  ended September 30)                                                              

  a. Net Sales                                                                        

                                                        Yen                                 U.S.    
                                                                                            Dollars  
                                                  (millions)                        (millions)
                                                1st            1st                      1st Half
                                                Half          Half                              
                                                2003          2002      Change        2003
                                                                                 (%)    

Software      Unaffiliated    Y 909,325    Y 918,089    -1.0      $8,192  
&                 customers                                                
Services      Intersegment         31,867         31,688    +0.6          287  
                      Total            Y 941,192    Y 949,777    -0.9      $8,479  

Platforms    Unaffiliated        723,821        769,713    -6.0        6,521  
                  customers                                                          
                  Intersegment        104,178        103,752    +0.4          939
                      Total                827,999        873,465    -5.2        7,460  

Electronic  Unaffiliated        334,746        289,037  +15.8        3,016  
Devices        customers                                                          
                  Intersegment         33,000         38,089  -13.4          297
                      Total                367,746        327,126  +12.4        3,313  

Financing    Unaffiliated         50,391         55,074    -8.5          454  
                  customers                                                          
                  Intersegment          4,027          5,607  -28.2            36
                      Total                 54,418         60,681  -10.3          490  

Other          Unaffiliated        123,651        118,473    +4.4        1,114  
Operations  customers                                                          
                  Intersegment         66,346         68,133    -2.6          598  
                      Total                189,997        186,606    +1.8        1,712  

Eliminations                         (239,418)    (247,269)        -      (2,157)

  Total                            Y 2,141,934 Y 2,150,386    -0.4    $19,297  

  b. Operating Income (Loss)    

                                        Yen                                      U.S.      
                                                                                Dollars    
                                  (millions)                          (millions)

                          1st Half      1st Half    Change      1st Half  
                              2003            2002      (Million        2003      
                                                                 Yen)      

  Software &        Y 28,890      Y 51,501    -22,611          $ 260
  Services                                                                                
  (Operating              (3.1%)      (5.4%)    (-2.3%)                    
  Margin)                                                                                

  Platforms          (20,715)    (30,805)    +10,090          (186)
                              ((2.5%))  ((3.5%))    (+1.0%)  

  Electronic          (1,218)    (23,102)    +21,884            (11)
  Devices                ((0.3%))  ((7.1%))    (+6.8%)                    

  Financing              2,007          2,591         -584              18  
                                 (3.7%)      (4.3%)    (-0.6%)                    

  Other                    5,031          4,312         +719              45  
  Operations              (2.6%)      (2.3%)    (+0.3%)                    

  Eliminations      (31,985)    (27,775)      -4,210          (288)

  Total              Y (17,990) Y (23,278)      +5,288         $(162)
                            ((0.8%))    ((1.1%))      (+0.3%)                    

  c. Sales to Unaffiliated Customers  

                                                      Yen                         U.S.    
                                                                                 Dollars  
                                                 (billions)              (millions)

                                          1st          1st                 1st Half  
                                         Half         Half                                
                                         2003         2002    Change    2003      
                                                                      (%)    

  Software        Japan      Y 671.4    Y 666.2    +0.8      $6,049  
  & Services    Overseas    237.8        251.8    -5.5        2,143  
                        Total      Y 909.3    Y 918.0    -1.0      $8,192  

  Platforms      Japan         505.0        539.0    -6.3        4,550  
                        Overseas    218.8        230.6    -5.2        1,971  
                        Total         723.8        769.7    -6.0        6,521  

  Electronic    Japan         164.6        145.9  +12.8        1,483  
  Devices         Overseas    170.0        143.1  +18.8        1,533
                        Total         334.7        289.0  +15.8        3,016

  Financing      Japan          50.3         55.0    -8.5          454  
                        Overseas          -              -        -                -
                        Total          50.3         55.0    -8.5          454  

  Other            Japan         100.9         93.8    +7.5          910  
  Operations    Overseas      22.6         24.5    -7.8          204  
                        Total         123.6        118.4    +4.4        1,114

  Total            Japan    Y1,492.5  Y1,500.1    -0.5    $13,446                
                        Overseas    649.4        650.2    -0.1        5,851  

                        Total    Y2,141.9  Y2,150.3    -0.4    $19,297  

  d. Sales to Unaffiliated Customers by Products and            
  Services                                                                                

                                                        Yen                U.S. Dollars  
                                                  (billions)            (millions)    

                                                  1st        1st                  1st  
                                                 Half      Half                 Half  
                                                 2003      2002    Change  2003  
                                                                          (%)  

  Software      Solutions/SI      Y413.7  Y403.2      +2.6  $3,727
  &                 Infrastructure    495.6    514.8      -3.7    4,465
  Services      Services                                                            
                      Total                 Y909.3  Y918.0      -1.0  $8,192

  Platforms    Servers              Y154.0  Y191.7    -19.7  $1,387
                      Mobile                                                                
                      Infrastructure/                                                
                      IP Network            80.9      85.7      -5.6        729  
                      Transmission         80.6      99.7    -19.2        726  
                      Equipment                                                          
                      PCs & Mobile        322.0    307.7      +4.6    2,901
                      Telephones                                                        
                      HDDs                      86.3      84.9      +1.6        778  
                      Total                Y 723.8 Y 769.7      -6.0  $6,521

  Electronic  Semiconductors Y 182.3 Y 165.3    +10.3  $1,643
  Devices        Others                 152.4    123.7    +23.2    1,373
                      Total                Y 334.7 Y 289.0    +15.8  $3,016

  Consolidated Geographic Segment Information (Six months       ended September 30)

  a. Net Sales                                                                        
                                                        Yen                                    U.S.    
                                                                                                Dollars  
                                                    (millions)                         (millions)

                                                  1st          1st                        1st Half
                                                  Half         Half                              
                                                  2003         2002            Change  2003
                                                                                         (%)      

  Japan          Unaffiliated  Y 1,616,284    Y 1,630,631    -0.9 $14,561
                      customers                                                  
                      Intersegment         201,698          155,557  +29.7    1,817
                      Total                Y1,817,982      Y1,786,188    +1.8 $16,378

  Europe         Unaffiliated         244,339          255,866    -4.5    2,201
                      customers                                                          
                      Intersegment          10,668              7,968  +33.9         96
          Total                                255,007          263,834    -3.3    2,297

  The              Unaffiliated         117,186          134,333  -12.8    1,056
  Americas      customers                                                          
                      Intersegment            9,068              9,964    -9.0         82
                      Total                    126,254          144,297  -12.5    1,138

  Others         Unaffiliated         164,125          129,556  +26.7    1,479
                      customers                                                          
                      Intersegment          92,396            90,069    +2.6      832
                      Total                    256,521          219,625  +16.8  2,311  

  Eliminations                          (313,830)        (263,558)        - (2,827)

  Total                                 Y 2,141,934      Y2,150,386    -0.4 $19,297

  b. Operating Income (Loss)                                                  

                                        Yen                                      U.S.      
                                                                                Dollars    
                                 (millions)                            (millions)

                         1st Half      1st Half      Change      1st Half  
                            2003            2002        (Million        2003      
                                                                 Yen)    

  Japan              Y 16,195        Y 23,393      -7,198          $146  
  (Operating            (0.9%)        (1.3%)    (-0.4%)                    
  Margin)                                                                                

  Europe                (2,042)        (7,642)      +5,600            (18)
                            ((0.8%))    ((2.9%))    (+2.1%)                    

  The                    (7,803)      (19,678)    +11,875            (70)
  Amaricas            ((6.2%))  ((13.6%))    (+7.4%)                    

  Others                 5,154            2,713      +2,441              46  
                                (2.0%)        (1.2%)    (+0.8%)                    

  Eliminations    (29,494)      (22,064)      -7,430          (266)

  Total              Y(17,990)    Y(23,278)      +5,288         $(162)
                            ((0.8%))    ((1.1%))    (+0.3%)                    

  Net Overseas Sales by Customer's Geographic Location (Six
  months ended September 30)                                                  

                                      Yen                                        U.S.      
                                                                                Dollars    
                                 (millions)                          (millions)  

                         1st Half        1st Half                  1st Half    
                            2003              2002      Change         2003        
                                                                 (%)    

  Europe            Y 268,964    Y 278,327        -3.4         $2,423  

  The                    168,650        191,454      -11.9          1,520  
  Americas                                                                                

  Others                211,814        180,438      +17.4          1,908  
  Outside                                                                                
  Japan                                                                                    

  Total              Y 649,428    Y 650,219        -0.1         $5,851  

  Consolidated Balance Sheets  

                                                  Yen                              U.S.      
                                                                                  Dollars    
                                            (millions)                    (millions)

                              September 30          March 31      September 30
                                    2003                    2003            2003      

  Assets                                                                                  
  Current assets:                                                                    
  Cash and                                                                                
  cash                                                                                      
  equivalents                                                                          
  and                                Y 239,458      Y 283,985        $2,157  
  short-term                                                                            
  investments                                                                          

  Receivables,                    669,432         840,408         6,031  
  trade                                                                                    

  Inventories                      619,349         595,984         5,580  

  Other                                271,703         351,263         2,448  
  current                                                                                
  assets                                                                                  

  Total                            1,799,942      2,071,640        16,216  
  current                                                                                
  assets                                                                                  

  Investments                      836,196         901,587         7,533  
  and                                                                                        
  long-term                                                                              
  loans                                                                                    

  Property,                                                                              
  plant and                                                                              
  equipment                                                                              
  less                                 855,895         990,552         7,711  
  accumulated                                                                          
  depreciation                                                                        

  Intangible                        248,436         261,582         2,238  
  assets                                                                                  

  Total                         Y 3,740,469    Y 4,225,361    $33,698  
  assets                                                  

  Liabilities, minority interests and shareholders' equity  

  Current liabilities:                                                            
  Short-term borrowings                                                          
  and current                  Y 543,024      Y 506,091        $4,892  
  portion of                                                                            
  long-term                                                                              
  debt                                                                                      

  Payables,                         666,846         716,842         6,008  
  trade                                                                                    

  Other                                465,302         542,291         4,192  
  current                                                                                
  liabilities                                                                          

  Total                            1,675,172      1,765,224        15,092  
  current                                                                                
  liabilities                                                                          

  Long-term liabilities:                                                        
  Long-term                         933,644      1,257,678         8,411  
  debt                                                                                      

  Other                                313,228         285,513         2,822  
  long-term                                                                              
  liabilities                                                                          

  Total                            1,246,872      1,543,191        11,233  
  long-term                                                                              
  liabilities                                                                          

  Minority                          168,559         214,556         1,518  
  interests                                                                              

  Shareholders' equity:                                                          
  Common stock                    324,624         324,624         2,925  

  Capital surplus                519,723         519,720         4,682  

  Retained earnings            (119,409)    (60,718)        (1,076)
  (deficit)                                                                              

  Unrealized gains on                                                              
  securities and                                                                      
  revaluation surplus on      18,177            6,090            164  
  land                                                                                      

  Foreign currency              (92,441)      (86,517)          (833)
  translation adjustments                                                        

  Treasury stock                      (808)          (809)              (7)

  Total shareholders'         649,866         702,390         5,855  
  equity                                                                                  

  Total liabilities,                    
  minority interests                                                                
  and shareholders'         Y3,740,469  Y4,225,361      $33,698  
  equity                                                      

  Ending balance of         Y1,476,668  Y1,763,769      $13,303  
  interest bearing loans                            

  Supplementary Information                                                    
                                                                    Yen                      
                                                              (billions)                
                                          1st Half         FY2003         FY2002
                                            FY2003        (Forecast)    

  Capital Expenditure            Y 66.7            Y 205.0    Y 147.6
  Depreciation                          97.3                205.0        264.6

  Consolidated Statements of Cash Flows (Six months ended    
  September 30)                                                                        
                                        Yen                                      U.S.      
                                                                                Dollars    
                                 (millions)                            (millions)

                         1st Half      1st Half      Change      1st Half  
                          FY2003         FY2002      (Million      FY2003    
                                                                 Yen)                        
  1. Cash                                                                                
  flows from                                                                            
  operating                                                                              
  activities:                                                                          

  Income                                                                                  
  (Loss)                                                                                  
  before                                                                                  
  income taxes                                                                        
  and                Y (51,082)  Y (220,101) +169,019        $ (460)
  minority                                                    
  interests                                                                              

  Depreciation    137,316         172,981    -35,665         1,237  
  and                                                                                        
  amortization                                                                        

  Accrual                2,319         (5,935)      +8,254              21  
  (Reversal)                                                                            
  of                                                                                        
  provisions                                                                            

  Equity in              (418)          2,090      -2,508              (4)
  earnings of                                                                          
  affiliates,                                                                          
  net                                                                                        

  Disposal of                                                                          
  property,                                                                              
  plant                                                                                    
  and                      9,531          31,460    -21,929              86  
  equipment                                                                              

  (Increase)         79,147         177,298    -98,151            713  
  Decrease in                                                                          
  receivables,                                                                        
  trade                                                                                    

  (Increase)        (60,294)        (9,714)    -50,580          (543)
  Decrease in                                                                          
  inventories                                                                          

  Increase          (11,307)    (172,303)  +160,996          (102)
  (Decrease)                                                                            
  in                                                                                        
  payables,                                                                              
  trade                                                                                    

  Other, net        (67,788)      (56,772)    -11,016          (611)

  Net cash                                                                                
  provided by                                                                          
  (used in)                                                                              
  operating          37,424        (80,996)  +118,420            337  
  activities                                                                            

  2. Cash                                                                                
  flows from                                                                            
  investing                                                                              
  activities:                                                                          

  Purchase of                                                                          
  property,                                                                              
  plant and                                                                              
  equipment         (68,766)      (95,505)    +26,739          (619)

  (Purchases                                                                            
  of)                                                                                        
  Proceeds                                                                                
  from                                                                                      
  Sales of            59,252          79,901    -20,649            534  
  Investment                                                                            
  Securities                                                                            

  Other, net        (20,838)          5,053    -25,891          (188)

  Net cash                                                                                
  provided by                                                                          
  (used in)                                                                              
  investing         (30,352)      (10,551)    -19,801          (273)
  activities                                                                            

  1+2 ( Free          7,072        (91,547)    +98,619              64  
  Cash Flow )                                                                          

  3. Cash                                                                                
  flows from                                                                            
  financing                                                                              
  activities:                                                                          
  Increase                                                                                
  (Decrease)                                                                            
  in bonds,                                                                              
  notes,                                                                                  
  short-term        (39,434)        201,551  -240,985          (355)
  borrowings                                                                            
  and                                                                                        
  long-term                                                                              
  debt                                                                                      

  Dividends                  -         (5,005)      +5,005                -  
  paid                                                                                      

  Other, net        (11,203)      (84,964)    +73,761          (101)

  Net cash                                                                                
  provided by                                                                          
  (used in)                                                                              
  financing         (50,637)        111,582  -162,219          (456)
  activities                                                                            

  4. Effect                                                                              
  of exchange                                                                          
  rate                                                                                      
  changes                                                                                
  on cash and        (2,110)        (3,083)         +973            (19)
  cash                                                                                      
  equivalents                                                                          

  5. Net                                                                                  
  increase                                                                                
  (decrease)                                                                            
  in cash                                                                                
  and cash          (45,675)         16,952    -62,627          (411)
  equivalents                                                                          

  6. Cash and                                                                          
  cash                                                                                      
  equivalents                                                                          
  at                    282,333         299,418    -17,085         2,543  
  beginning                                                                              
  of period                                                                              

  7. Cash and                                                                          
  cash                                                                                      
  equivalents                                                                          
  at end of         Y 236,658  Y 316,370    -79,712        $2,132  
  period                                                                                  

Marketable Securities (Six months ended September 30)    

1. Net Unrealized Gain on Marketable Securities    

                                            Yen                                      Yen                
                                        (millions)                         (millions)            

                                 September 30, 2003                March 31, 2003  

                         Carry        Fair          Net    Carry        Fair          Net  
                         -ing        Value      Unreal      -ing      Value      Unreal
                        Value                        -ized    Value                        -zed  
                                                        Gains                                  Gains
                                                  (Losses)                              (Losses)

Held-to-mat-    Y3,068    Y3,062        Y (6)  Y1,509  Y 1,506        Y (3)
urity                                                      
securities                                                                          

Investment      158,736  449,224  290,488  202,621  391,237  188,616
in                                                                          
affiliates                                                                            

        Total    Y161,804 Y452,286 Y290,482 Y204,130 Y392,743 Y188,613

2. Summary of Marketable Securities at Fair Value

                                              Yen                                    Yen        
                                         (millions)                          (millions)
                                 September 30, 2003                  March 31, 2003      

                              Cost      Carry         Net        Cost        Carry        Net
                                            -ing      Unrea                        -ing    Unrea
                                          Value    -lized                      Value    -lized
                                          (Fair      Gains                      (Fair      Gains
                                          Value) (Losses)                  Value) (Losses)

Available-for-                                                                    
sale:

Equity                    
securities        Y 60,024 Y 85,770  Y 25,746 Y 75,425 Y 79,372  Y 3,947

Debt                      4,535      4,421         (114)    3,789      3,609      (180)
securities and                                                                
others                                                                                

         Total        Y64,559  Y90,191    Y25,632  Y79,214  Y82,981  Y3,767

Fujitsu Reports FY2003 First-Half Financial Results

Net Loss Posted on Flat Sales, But Second Quarter Sales and Operating Income Rebound

Tokyo, October 29, 2003 - Fujitsu Limited, a leader in customer-focused IT and communications solutions for the global marketplace, today reported consolidated net sales of 2,141.9 billion yen (approximately US$19.3 billion) for the first half of fiscal year 2003 (April 1 - September 30, 2003), a 0.4% decrease from the first half of fiscal 2002. Net sales in the second quarter increased 3.1%, to 1,203.1 billion yen, led by strong sales of PCs, mobile telephones, logic chips, and plasma display panels. It was the first time since the first quarter of FY2001 that Fujitsu posted year-on-year quarterly sales growth. Higher sales and lower operating expenses contributed to a rebound in second quarter operating income to 19.8 billion yen (US$179 million). For the company as a whole, however, a large operating loss in the first quarter resulted in an operating loss for the first six months of 17.9 billion yen (US$162 million), compared to an operating loss of 23.2 billion yen for the first half of FY2002.

During the first half, higher pension obligation expenses, a casualty loss stemming from an earthquake in May, and foreign exchange losses resulting from the rapid appreciation of the yen in late September were partially offset by gains from the sale of a portion of the company's shares in Fanuc Ltd. The net loss for the first six months was 58.5 billion yen (US$528 million), compared to a net loss of 147.4 billion yen in the first half of 2002. The net loss for the second quarter was 18.7 billion yen (US$169 million), compared to a net loss of 91.0 billion yen in the same period last year.

Second Quarter Financial Results

                              Second Quarter         Change from              % Change
                                                              Previous Year

  Net Sales            1,203.1 billion yen  +35.8 billion yen    +3.1%

  Operating Income      19.8 billion yen  +14.1 billion yen
  Net Income              -18.7 billion yen  +72.2 billion yen

Net sales in the second quarter were 1,203.1 billion yen, an increase of 3.1% over the same period in the previous year. It was the first time since the first quarter of FY2001 that Fujitsu posted year-on-year quarterly sales growth. Sales in software and services were maintained at roughly the same level as the prior year, while sales of servers and other systems hardware recovered, particularly in overseas markets. In addition, sales expanded in a wide variety of product areas, including notebook PCs, hard disk drives for notebook PCs, semiconductors used in digital audio-visual equipment, and plasma display panels. Although price competition in software and services as well as hardware is becoming more severe, the IT market overall is finally bottoming out.

Operating income was 19.8 billion yen, a 14.1 billion yen improvement over the previous year. Operating income was 2 billion yen higher than the company's public projections, indicating that results are broadly in line with company expectations. These results reflect the savings achieved from last year's restructuring initiative and continued efforts to cut costs and improve efficiencies in response to ongoing pricing pressures.  

Although there was an improvement in operating profit and interest expenses were lower, pension obligation expenses increased, and there was a foreign exchange loss associated with the rapid appreciation of the yen in late September. As a result, Fujitsu posted a net loss of 18.7 billion yen for the second quarter. This represents an improvement of 72.2 billion yen compared to the second quarter of last year, when there were large extraordinary losses associated with the company's restructuring.

Second Quarter Operating Income by Business Segment

                         Second         Change         First  
                         Quarter        from            Quarter  
                                            Previous                                    
                                            Year  

  Software         32.5            -18.1          -3.6                        
  and                 billion        billion        billion                    
  Services         yen              yen              yen                          
  Platforms        -1.2            +16.5          -19.4                        
                         billion        billion        billion                    
                         yen              yen              yen                          

  Electronic      4.9              +20.6          -6.1                        
  Devices          billion        billion        billion                    
                         yen              yen              yen                          

For the company as a whole, operating income moved from a 37.8 billion yen loss in the first quarter to a 19.8 billion yen profit in the second quarter. In the first quarter, the three main segments-software and services, platforms, and electronic devices-all posted operating losses. In the second quarter, however, software and services posted operating income of 32.5 billion yen and electronic devices posted operating income of 4.9 billion yen, while the platforms segment moved close to break even, posting an operating loss of only 1.2 billion yen, supported by stronger sales and the cost efficiencies generated by previous restructuring initiatives.  

Compared with the second quarter of the previous year, Fujitsu posted a 14.1 billion yen improvement in operating income. Large improvements were achieved in both platforms and electronic devices, while software and services posted an 18.1 billion yen reduction in operating income resulting from the deterioration in profitability of particular projects.  

In the platforms segment, the hard disk drive business returned to profitability. In electronic devices, there was a large increase in the profitability of the plasma display panel business and success in minimizing the financial impact on the logic IC business of the earthquake at the Iwate production facility. All of these factors contributed to the improvement in profitability compared to the previous quarter as well as the prior year.

First Half Financial Results

                                First Half      Change from        % Change  
                                                      Previous Year

  Net Sales            2,141.9            -8.4                  -0.4%        
                              billion yen      billion yen                                    

  Operating            -17.9                +5.2                      
  Income                 billion yen      billion yen                                    

  Net Income          -58.5                +88.8                      
                              billion yen      billion yen                                    

Net sales for the first half were 2,141.9 billion yen, roughly the same level as the first half of last year. Compared with the same period last year, sales of software and services were roughly flat, sales of platforms declined 6%, as strong second quarter results could not make up for the large drop-off in the first quarter, and sales of electronic devices increased 15.8% on strong sales of LSIs (System-on-Chips) and displays.

Fujitsu posted an operating loss for the first half of 17.9 billion yen. It appears that sales of new product offerings in the platforms segment will be concentrated in the second half of the fiscal year, and major software and services sales associated with those products will also therefore be shifted to the second half, curtailing growth of these sales in the first half. In addition, the large operating loss in the first quarter exceeded the operating profit posted in the second quarter. On the other hand, even in an environment of severe price competition, because of the effects of last year's restructuring and additional cost efficiencies, the company achieved a 5.2 billion yen improvement over the previous year.

Fujitsu incurred higher expenses stemming from the amortization of unrecognized pension benefit obligations. The company also posted a 34.4 billion yen gain on the sales of marketable securities, including a portion of Fujitsu's holdings of Fanuc, Ltd. stock, a 4.7 billion yen casualty loss for damages incurred in the earthquake off the coast of Miyagi Prefecture in May, and a 4.6 billion yen restructuring charge associated with several domestic and overseas subsidiaries.  

The net loss was 58.5 billion yen, an 88.8 billion yen improvement compared to the first half of last year, when the company posted large restructuring charges.

Results by Business Segment in the First Half

* Net sales represents net sales to third parties Segment information for the first half is as follows.

1. Software & Services

                                  First Half                Change from Same  
                                                                  Period Last Year

  Net Sales                 909.3 billion yen    -1.0%                    
  Japan                        671.4 billion yen    +0.8%                    
  Overseas                  237.8 billion yen    -5.5%                    
  Operating Income      28.8 billion yen      -22.6 billion yen

Net sales in the software and services segment were 909.3 billion yen, roughly even with results for the same period last year. Sales within Japan increased, but overseas sales, which represent about one-fourth of the total, declined. The decline is partly attributable to the sale last year of some European business units as well as the currency conversion impact of the strong yen.  

Operating income declined significantly compared to the prior year. The impact of new platforms product offerings being concentrated in the second half, the deterioration in profitability of particular projects, and aggressive up-front investments in middleware and Linux offerings all hurt profitability in Japan, while overseas profitability was affected by a deterioration in North American results.

                                          Net Sales                  Change from      
                                                                            Same Period      
                                                                            Last Year    

  Solutions / S I                413.7 billion yen    + 2.6%              

  Infrastructure                 495.6 billion yen      -3.7%                
  Services                                                                        

Sales increased of solutions/system integration services, whereby Fujitsu provides services to individual customer projects. Higher sales were posted to the public sector, through such high-profile projects as the e-Japan initiative, as well as the healthcare sector.   In infrastructure services, whereby Fujitsu provides services for business infrastructure, sales within Japan of corporate outsourcing services continued to be strong. Overseas, however, sales in Europe declined.

In order to support the global expansion of its customers, Fujitsu is enhancing its organizational structure in Europe, the U.S., and Asia. During the current period, in addition to supporting the global expansion of Japanese corporations, the company received a series of major government-related outsourcing deals in the U.K. and succeeded in winning other major global deals in Europe and North America.  

Fujitsu is clearly establishing a strong business platform in Europe, and is coordinating its effort to strengthen its position in the U.S. market.

2. Platforms

                                        First Half          Change from Same  
                                                                  Period Last Year  

  Net Sales                 723.8 billion yen    - 6.0%                  
  Japan                        505.0 billion yen    - 6.3%                  
  Overseas                  218.8 billion yen    - 5.2%                  

  Operating Income      -20.7 billion yen    + 10.0 billion yen    

Net sales of platforms products declined by 6% compared to the previous year. In Japan, the company posted strong sales throughout the period of consumer-oriented PCs with enhanced audio-visual and LAN functions as well as newly-launched mobile phone handsets. There was, however, only a moderate recovery in capital expenditures by telecom carriers and other corporations. Overseas, a strong market for notebook PC hard disk drives boosted sales of those products, and in the latter half of the period there were signs of a recovery in the markets for transmission systems, primarily in North America, and UNIX servers, primarily in Europe. On the other hand, for the first half overall, sales of transmission systems and server-related equipment were both down by nearly 20% compared with the same period last year, reflecting the lingering after-effects of the telecom bubble in North America and the inclusion in last year's first-half results of some major sales of server-related equipment in Japan.

The operating loss for the platforms segment was 20.7 billion yen, representing an improvement of 10.0 billion yen compared to the first half of the previous year. Improvements in PCs, hard disk drives and other business areas resulting from last year's restructuring and other cost-cutting measures were not enough to offset the impact of lower sales of servers and networking equipment.  

                                         Net Sales              Change from        
                                                                      Same Period        
                                                                      Last Year        

  Servers                          154.0 billion        -19.7%                
                                         yen                                                

  Mobile / IP Networks      80.9 billion         - 5.6%                
                                         yen                                                

  Transmission Systems      80.6 billion         - 19.2%              
                                         yen                                                

  PCs / Mobile Phones        322.0 billion        + 4.6%                
                                         yen                                                

  Hard Disk Drives            86.3 billion         + 1.6%                
                                         yen                                                

In servers and PCs, Fujitsu has integrated its development operations and is selling in the four major markets of Japan, the U.S., Europe, and Asia. In UNIX servers, the company's high-end systems have achieved top scores in a number of performance benchmarks, and sales in Europe and other areas are expanding.  

Fujitsu is further enhancing its ability to provide products for the global markets, differentiating itself on the basis of its superior technology. It is also strengthening its server business by deepening the linkage with its software and services business through its TRIOLE infrastructure concept. Fujitsu is also widening the scope of its global alliances with other companies and pursuing an all-out marketing effort in Japan.

In design and manufacturing, the company is also making every effort to strengthen its manufacturing prowess through the introduction of some of Toyota's techniques. By further enhancing its ability to cut costs, the company is laying a foundation for stable profitability.

*TRIOLE is Fujitsu's IT infrastructure initiative that addresses the most pressing needs of corporate and institutional customers: scalability to expand with their requirements; quick and easy integration with partners; lower cost of ownership; and operational reliability.

3. Electronic Devices

                                        First Half          Change from Same  
                                                                  Period Last Year

  Net Sales                 334.7 billion yen    + 15.8%                
  Japan                        164.6 billion yen    + 12.8%                
  Overseas                  170.0 billion yen    + 18.8%                

  Operating Income      -1.2 billion yen      + 21.8 billion yen  

Net sales of electronic devices increased 15.8% over the previous year. Sales of semiconductor products for digital audio-visual equipment, mobile phones, and automobiles were strong in Japan, Asia, and Europe. In addition, market demand for flat screen TVs has taken off, sparking very strong sales growth in plasma display panels and other displays.

The electronic devices segment moved very close to break-even, posting an operating loss of 1.2 billion yen. Aided by a market recovery and the effects of the restructuring initiatives undertaken last fiscal year, the segment achieved profitability in the second quarter. Although first quarter results were adversely affected by the disruption of the Iwate production facility caused by the earthquake off the coast of Miyagi Prefecture in May, the impact was largely offset by higher sales in the second quarter.  

In addition to good results in the plasma displays business, which benefited from a strong market, improved yield rate and other cost efficiencies, the components business, which had perennially lost money, is now profitable as a result of cost reductions achieved through productivity reforms.

To achieve greater efficiencies and competitiveness, Fujitsu and U.S.-based Advanced Micro Devices, Inc. (AMD) have expanded their joint venture in flash memory production to integrate their respective marketing and product development operations. Accordingly, on June 30 the two companies transferred their flash memory operations into a newly-established joint venture company, FASL LLC, which is 40% owned by Fujitsu and 60% owned by AMD. Fujitsu will continue to handle sales as a distributor for the joint venture. The new venture's profitability relating to development and manufacturing will be reflected in Fujitsu's financial results according to equity-method accounting treatment.

Demand for flash memory during the period was extraordinarily strong, particularly for the mobile phone market. But it was only at the end of the period that prices finally stopped falling, however, so the profitability of the business continued to face very severe conditions.  

                                      First Half          Change from the      
                                                                 same period last    
                                                                 year    

  Semiconductors      182.3 billion yen      + 10.3%                  
  Other                    152.4 billion yen      + 23.2%                  

Balance Sheet Summary

                                          As of September        Change from  
                                                30, 2003          March 31, 2003

  Total Assets                  3,740.4 billion      - 484.8            
                                         yen                         billion yen      

  Interest Bearing            1,476.6 billion      - 287.1            
  Liabilities                    yen                         billion yen      

  Shareholders' Equity      649.8 billion         - 52.5  
                                         yen                         billion yen                  

Total assets at the end of the first half were 3,740.4 billion yen, a reduction of 484.8 billion yen from the end of the previous fiscal year. The reduction in assets is a result of the switch to equity-method accounting for the company's flash memory operations and leasing affiliate as well as further progress in promoting balance sheet efficiencies through such measures as the sale of marketable securities.  

Total current assets were reduced by 271.6 billion yen from the end of the last fiscal year, to 1,799.9 billion yen. While trade receivables declined by 170.9 billion yen as a result of collections from sales concentrated at the end of the previous fiscal year, inventories increased by 23.3 billion yen in anticipation of increased sales in the second half. Other current assets decreased by 79.5 billion yen from the end of the previous fiscal year as a result of the reduction of lease receivables in accordance with the switch to equity-method accounting for the leasing company.

Total fixed assets decreased by 213.1 billion yen from the end of the last fiscal year, to 1,940.5 billion yen. Property, plant and equipment decreased by 134.6 billion yen as a result of the reorganization of flash memory operations. In addition, investments and other assets decreased by 65.3 billion yen in accordance with the decrease in lease receivables and the sale of marketable securities.  

Total liabilities declined by 386.3 billion yen from the end of the previous fiscal year, to 2,922.0 billion yen. In addition to a 220 billion yen reduction in interest-bearing liabilities from the change in the accounting treatment of the leasing company to the equity method, progress was also achieved in the redemption of corporate bonds and the repayment of bank loans, resulting in a total reduction of interest-bearing liabilities of 287.1 billion yen from the end of the previous fiscal year. Interest-bearing liabilities at the end of the current period were 1,476.6 billion yen, so at present the company has already achieved its objective of reducing interest-bearing liabilities to 1,500.0 billion yen by the end of the fiscal year. Fujitsu has also reduced its ratio of interest-bearing liabilities by 2.2%, to 39.5%. Through the effective use of its asset holdings, the company will continue its effort to reduce interest-bearing liabilities to the extent possible.  

Total shareholders' equity declined by 52.5 billion yen as a result of the net loss for the period, to 649.8 billion yen. Because, proportionally, assets contracted by more than shareholders' equity, the shareholders' equity ratio increased by 0.8%, to 17.4%.

Summary of Cash Flows

                                        First Half            Change from    
                                                                    Previous Year    

  Cash Flow from              37.4 billion         118.4 billion      
  Operations                    yen                        yen                      

  Cash Flow from              - 30.3 billion      -19.8 billion      
  Investing                      yen                        yen                      

  Free Cash Flow              7.0 billion          98.6 billion  
                                        yen                        yen

Net cash flow generated by operating activities in the first half was 37.4 billion yen (compared to negative 80.9 billion yen in the same period last year), resulting in part from the significant collection of trade receivables at the end of the last fiscal year. This improvement of 118.4 billion yen was also attributable to a substantial reduction in the loss before income taxes compared to the same period of the previous year.

Net cash flow from investing activities was negative 30.3 billion yen, achieved by concentrating capital expenditures in high growth segments and through sales of marketable securities.  

By holding investment spending within the amount of net cash generated by operating activities, free cash flow improved by 98.6 billion yen compared to the same period last year, to positive 7.0 billion yen.

Net cash flow generated from financing activities was negative 50.6 billion yen. Cash generated from operations and existing cash balances were used towards the redemption of bonds and the repayment of outstanding debt.

As a result, total cash and cash equivalents fell by 45.6 billion yen, to 236.6 billion yen.  

Dividend Policy

With respect to the disposition of profits, Fujitsu believes that a portion should be paid to shareholders to offer a stable return, and that a portion should be retained by the company to strengthen its financial base and support new business development opportunities that will result in improved long-term performance.

Although, on an unconsolidated basis, Fujitsu posted net income of 18.7 billion yen for the current period, the company is still in the midst of its plans to restore the profitability of its core business as reflected in operating income, and the company reported operating losses for the current period on both a consolidated and unconsolidated basis. Accordingly, the company has reluctantly decided to forgo dividend payments for the first half of fiscal 2003. With respect to the dividend for the next payout period, following the end of this fiscal year, the company would like to base its decision on a review of the full-year's results, and therefore no decision has been reached at the present time.

Strategic Management Direction

Management Stance

As the scope of the networked society continues to expand, IT is permeating every aspect of our daily lives, moving us ever closer to a ubiquitous networked world, where information sharing through the network is available anytime, anyplace and with anyone. Moreover, IT is playing an increasingly important role in the ability of customers to manage their businesses. Nowadays, IT vendors must recognize that customers do not simply look for suppliers of products and services when selecting partners for building and operating their IT systems. Rather, IT vendors are expected to be true partners who, based on long-term relationships of mutual trust, can make appropriate proposals and implement them through the entire IT life-cycle.

The customer is the starting point for everything we do and think about at Fujitsu. By understanding in detail the environment in which our customers operate and their overall businesses, we are able to provide them with effective proposals that are both concrete and timely. Moreover, we will continue to strive to keep pace with the fast-changing markets and needs of our customers.

As a leader of the IT industry, we are firmly committed to continuously providing total solutions that utilize high-quality products and services based on advanced technology that offers superior performance and reliability. In this way, we will further strengthen our overall capabilities -- which range from cutting-edge technology that incorporates the latest advances and applications to a full complement of services -- and at the same time contribute to our customers' businesses. We aim by so doing to become management partners to our customers and grow together with them.

Business Strategy and Priority Issues

We believe that, in today's uncertain economic and market conditions, our customers are giving priority to reducing the cost of operating their IT systems and bolstering their competitiveness in order to promote further growth.  

Today's IT systems are comprised of an increasingly wide variety of hardware and software products, and along with higher performance levels comes greater complexity. Consequently, the task of operating them has become a greater burden for customers. While, on the one hand, systems are often separated along divisional lines, it is becoming increasingly important to link them with external systems, and the issue of interconnectivity among systems is becoming increasingly crucial. In addition, there is growing demand for the ability to integrate the overall structure and management of corporate IT systems.

Fujitsu is uniquely positioned to offer our customer comprehensive solutions to their business problems through the strategic utilization of information technology. We are actively using this expertise to contribute to our customers' business growth and expansion.

Below are some of the specific initiatives we are currently emphasizing.

Continually Providing Comprehensive Solutions

While increasing the level of interconnectivity among our customers' various divisional systems, we aim to achieve an integrated perspective on the overall chain of processes relating to our customers' systems - from consulting and planning through development, operation and maintenance - and thereby help them to reduce their overall IT costs and strengthen the competitiveness of their operations. We are not simply offering suggestions at the various stages in these processes but rather continuously providing comprehensive service proposals based on in-depth understanding of the customers' management policies and strategy.

Strengthening the Infrastructure of Next-Generation IT Systems

Today's IT systems are becoming increasingly sophisticated and complex. In response, Fujitsu is intensifying its commitment to develop and deploy TRIOLE, its next-generation IT infrastructure initiative. TRIOLE utilizes middleware to integrate open standard servers, storage and network resources, bringing harmony to the disparate parts of an IT system, including those manufactured by other companies. Specifically, while enhancing the technology we have accumulated in the mainframe field in high-reliability design and superior operational stability, we are utilizing our rich experience and know-how in systems integration and producing templates for highly-reliable systems integration. These advantages enable us to offer our customers operational system stability, faster system deployments, and scalability to keep pace with the growth of their business.

Business Segment Initiatives

In our services and software business, we are continuing to strive to improve profitability by bolstering the efficiency of application development and strengthening project management. We are also rapidly shifting our emphasis to growth markets such as services for top-tier manufacturers and retailers, healthcare, and local government consolidation, in addition to growth fields as outsourcing, CRM, ERP, e-learning and mobile solutions. Moreover, we are strengthening sales of our competitive middleware products and aim to increase our share of that market.

In our platforms business, we are further strengthening our manufacturing prowess by taking various measures to boost productivity, such as initiating major productivity reforms in our manufacturing facilities. Our efforts are not limited to the manufacturing process. At every stage of our operations, including development, design and procurement, we are working hard to improve product and service quality, reduce development time and cut costs. Moreover, based upon our TRIOLE next-generation IT infrastructure initiative, we are promoting coordination with our software and services unit to expand business, and we are laying the organizational foundation to expand our business globally.

In our electronic devices business, as part of the initiatives to improve our profitability, we are moving quickly to focus our resources on markets in which we expect high growth, such as logic ICs for home information appliances, mobile devices and networks. At the same time, we are moving ahead with the development of advanced CMOS technology, which will further enhance the competitiveness of our products. To launch, in a timely manner, the products that meet our customers' needs, we are working to speed up every process throughout our organization.

We have made cash flow management a major priority and are taking various steps to improve our financial structure. In the first half, we succeeded in reducing interest-bearing debt through such means as the sales of equity holdings and changing the status of our leasing affiliate into a company warranting equity-method accounting treatment. By continuing to focus on improving the profitability of our core operations as a top priority, while at the same time promoting a more efficient use of our assets, we will make further progress towards improving the company's financial position.

By continuously applying our efforts to the accomplishment of these tasks, we are striving to become a global company that is trusted by our customers and society, and that can make a significant contribution to building a prosperous and dynamic networked society.

Policy Regarding Minimum Lot Size for Trading Shares

Participation of individual investors in the equity markets is increasing, and we recognize the importance of this trend from the viewpoint of the revitalization of the capital markets and the promotion of long-term, stable holdings of the company's shares. Moreover, as a basic principle, as part of our ongoing investor relations activities, we inform investors about the company's financial condition through active and appropriate disclosure of company information.  

With respect to lowering the minimum lot size for trading the company's shares, we realize that such a move could promote the participation of individual investors in the equity market and, therefore, could be an effective means of boosting the liquidity of the stock. Nevertheless, after considering the current stock price level, the number of shareholders, the current distribution of individual shareholders and the market liquidity of Fujitsu's stock, we have come to the conclusion that it would be premature to reduce the minimum lot size at the present time.  

Taking into account overall trends in individual stock ownership and Fujitsu's stock price, we will carefully consider what action might be appropriate in the future.  

Earnings Projections for FY2003

After having undergone two painful years of restructuring, there are signs that Fujitsu's financial results are beginning to improve, with the company posting in the second quarter its first year-on-year quarterly sales growth in two years. With respect to the market environment facing the IT industry, technological advances have made digital cameras, DVDs, camera phones, and other digital audio-visual equipment cheaper, lighter, and more sophisticated, spurring an increase in demand, and the company expects these trends to continue. In conjunction with these trends, Fujitsu fully expects demand for advanced broadband network infrastructure, particularly servers and storage systems, to also increase.

At the present time there are some causes for concern about instability relating to the situation in Iraq and the equity market, but the company feels that conditions are ripe for an economic upturn in the second half. On the other hand, globalization and technological progress are combining to significantly accelerate the downward pricing pressure on computer hardware in addition to software and services. Fujitsu itself must therefore intensify the globalization of its own operations, maintain its technological superiority, strengthen its manufacturing prowess, and implement operational reforms to generate greater efficiencies, including additional cost savings. Amid the major changes affecting the IT industry, Fujitsu will continue to emphasize, above all, the company's customer-oriented perspective and fast responsiveness.

With respect to Fujitsu's projections for the full fiscal year, the shift to the equity-method of accounting for the company's leasing affiliate has resulted in a downward revision of 50 billion yen in our net sales forecast. For operating income, because of a profit deterioration in software and services, the company expects not to be able to meet its original profit targets in that business segment. Fujitsu now expects, however, to offset that amount through improved results in platforms and electronic devices, so it is not changing its original projections for the full year. The company's projections for net income also remain unchanged.  

Earnings projections for the third quarter are shown below. In Fujitsu's business, sales tend to be concentrated at the end of the fiscal year. Even though sales in the third quarter are projected to be 100 billion yen lower than in the second quarter, the company still expects to post an operating profit and lay the foundation for stable profitability.

Fujitsu Limited Consolidated Earnings Forecast for Fiscal 2003  

                          FY 2003                Change         FY2002            
                          (forecast)          Since          (reported)      
                                                      July

  Net Sales         4,750 billion      -50              4,617.5          
                          yen                      billion        billion yen    
                                                      yen                                    

  Operating         150 billion                            100.4 billion
  Income              yen                                         yen                

  Net Income        30 billion yen                        -122.0            
                                                                         billion yen    

Earnings Forecast for Fiscal 2003, by Quarter

                  Q1                Q2                Q3                 Q4              
                  (reported)  (reported)  (forecast)    (forecast)

  Net          938.7          1,203.1        1,100.0         1,508.0      
  Sales        billion        billion        billion         billion      
                  yen              yen              yen                yen            

  Operating -37.8          19.8            5.0                162.9        
  Income      billion        billion        billion         billion      
                  yen              yen              yen                yen            

Note:  

* All yen figures have been converted to US dollars for convenience only at a uniform rate of $1=111 yen.  

* FY2003 from April 1, 2003 - March 31, 2004; FY2002 from April 1, 2002 - March 31, 2003  

* Due to uncertainties relating to changes in demand for products and components in key markets (Japan, U.S., Europe, etc.), currency exchange rate fluctuations, Japan and U.S. stock market conditions, and other factors, actual results may vary substantially from projections above.  

About Fujitsu Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, highly reliable computing and telecommunications platforms, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$38 billion) for the fiscal year ended March 31, 2003. For more information, please see: www.fujitsu.com For details and supplemental information regarding Fujitsu's FY2002 financial results, please see http://pr.fujitsu.com/en/ir/

All company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purposes only

                 This information is provided by RNS
      The company news service from the London Stock Exchange

end of announcement            euro adhoc 30.10.2003
---------------------------------------------------------------------


Further inquiry note:
Contact:
Yuri Momomoto or Scott Ikeda                                
Fujitsu Limited, Public and Investor Relations  
TEL:+81 (0) 3-6252-2176
FAX:+81 (0) 3-6252-2783
URL:http://pr.fujitsu.com/en/news/fjcontacts.html
E-mail:pr@fujitsu.com

Branche: Hardware
ISIN:      JP3818000006
WKN:        0354912
Index:    
Börsen:  Frankfurter Wertpapierbörse / official dealing
              SWX Swiss Exchange / official dealing
              London Stock Exchange / official dealing



Weitere Meldungen: Fujitsu Limited

Das könnte Sie auch interessieren: