Fujitsu Siemens Computers, the leading European IT provider announces its results for the first half of Fiscal Year 2006 (1HY06). From April to September the company achieved 3.1 billion Euros in revenue, for the first time breaking through the three billion Euro revenue mark.
Bernd Bischoff, President & CEO Fujitsu Siemens Computers: “We have managed to assert our market position in an extremely tough market environment. For the first time in its history, the IT industry is experiencing that a generally good economic climate is not automatically followed by increased demand in the IT sector. We are taking the right decisions now to prepare our company for ongoing competition in the long-term. I am especially pleased that the integration of our new Services business is progressing so well. We are already benefiting from increased synergies and have won new customers as a result.”
For 1HY06 Fujitsu Siemens Computers recorded 18 million Euros in operating profit, but also needs to absorb 14 million Euros in restructuring costs. Profit before tax was confirmed at 4 million Euros.
Revenue and profit in the hardware business were affected by a decline in Average Selling Price (ASP) and margin pressure. Oversupply in the channel, caused by industry overstock in the first quarter of the calendar year and the introduction of the European directive on RoHS (Restriction of Hazardous Substances) on July 1, 2006, had a negative impact on business.
To counteract the difficult conditions in the Western European hardware business, Fujitsu Siemens Computers increased its activities in emerging markets such as Eastern Europe. The hardware business revenue of its Eastern European region grew by 34 per cent.
The company has outlined cost saving and restructuring programs to ensure profitable growth. By March 2007, Fujitsu Siemens Computers will have achieved stringent cost saving measures in its Europe, Middle East and Africa region, including cost savings in the personnel area.
In addition, the company re-organized its Sales organization to focus more closely on customers’ business needs and to strengthen its data center portfolio. The infrastructure sales area will be enlarged to increase the focus on sales of Dynamic Data Center solutions. Customers will benefit from the close link of this sales force with the company’s new Services business, IT Product Related Services (ITPS).
Bernd Bischoff commented: “I am convinced that we have taken the right steps and that our portfolio of products, solutions and services will allow us to fulfill our ambitious goals. With the integration of the Services business we can now implement our strategy of offering end-to-end solutions delivering true value-add to our customers.”
For the second half of the fiscal year (ending March 31, 2007) Fujitsu Siemens Computers is expecting the IT market to show a slight increase in demand. “We are always prepared for a tough market and fluctuations in demand. But obviously, should the market develop better than expected we will be ready,” he added.
About Fujitsu Siemens Computers
Fujitsu Siemens Computers is the leading European IT provider with a strategic focus on next-generation Mobility and Dynamic Data Center products, services and solutions. With a platform and services portfolio of exceptional depth, our offering extends from handhelds through desktops to enterprise-class IT infrastructure solutions and services offerings. Fujitsu Siemens Computers has a presence in all key markets across Europe, the Middle East and Africa, with the services division extending coverage up to 170 countries worldwide. Leveraging the strengths, innovation and global reach of our joint shareholders, Fujitsu Limited and Siemens AG, we make sure we meet the needs of customers: large corporations, small and medium enterprises and private users. To meet international standards for corporate social responsibility, Fujitsu Siemens Computers is a member of the United Nations Global Compact.
For more information on Fujitsu Siemens Computers, please visit: www.fujitsu-siemens.com.
