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Investing.com -- Fujitsu reported first-quarter operating profit of ¥33.5 billion on Wednesday, representing a 133.7% increase year-over-year and exceeding the consensus estimate of ¥29.8 billion.
The Japanese technology company posted revenue of ¥749.9 billion for the quarter, down 1.2% compared to the same period last year and slightly below the consensus forecast of ¥753.9 billion.
Adjusted operating profit came in at ¥35.1 billion, up 111.9% from the previous year. The company said these results aligned with its internal estimates.
A key highlight of the quarterly performance was margin improvement across all business segments. The company’s Region Japan sales grew 6.2% year-over-year with adjusted operating profit margin improving by 0.5 percentage points to 14.4%.
In a notable shift, Fujitsu’s overseas operations reported operating profit rather than losses. The company also recorded a ¥140 billion capital gain from Shinko Electric Industries, which boosted its net profit.
The Service Solutions segment saw sales increase by 2.6% year-over-year, with domestic business growing 6% while overseas business declined 6% due to foreign exchange impact. Adjusted operating profit for this segment reached ¥47.8 billion, up 36.8%, with operating profit margin improving by 2.3 percentage points to 9.3%. The company attributed this improvement to sales growth, better project mix, and internal efficiency gains that added 1.5 percentage points to gross profit margin.
Domestic orders received for Service Solutions increased 1% year-over-year in the first quarter. By industry, finance sector orders grew 19%, while mission-critical and national security orders rose 14%. Enterprise orders declined 3%, but adjusting for large projects, this segment actually grew approximately 9%. Public and health orders decreased 4%, though the company expects more projects in the second and third quarters.
In overseas markets, European orders surged 77% year-over-year, capturing multi-year datacenter-related business. Asia-Pacific orders increased 17%, while Americas orders fell 49% due to difficult year-over-year comparisons from large multi-year projects secured in the previous fiscal year.
The company’s Uvance business reported 52% year-over-year sales growth, contributing to the overall Service Solution segment growth.
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