Fujitsu reports lower second quarter profit
Japanese technology company Fujitsu Ltd. reported a sharp drop in its latest quarterly profit Wednesday, battered by a rising yen and the aftermath of less investment in its U.S. and European businesses during the financial crisis.
Fujitsu's July-September profit totaled 17.4 billion yen ($213 million), plunging from 72.4 billion yen earned a year earlier when the sale of investment securities boosted results.
Sales for its fiscal second quarter dropped 3.7 percent to 1.1 trillion yen ($13.5 billion).
Sales would have risen year-on-year if it weren't for the appreciation of the yen, according to Tokyo-based Fujitsu, which provides technology services for mobile devices and servers. It also makes electronic components.
The company hopes to invest in new cloud computing services as its results pick up, said Masami Yamamoto, president of Fujitsu.
Some Japanese companies like Fujitsu were forced to hold off on investments aimed at boosting their global businesses during the troubled times that followed the 2008 financial crisis.
More recently, Japanese companies have been hit by the plunging dollar, which has slid from about 90 yen to 80 yen levels lately, diminishing the value of overseas earnings.