OREANDA-NEWS. February 03, 2016. Fujitsu Limited (hereinafter referred to as "the Company") announced today that it has recorded a provision for capital deficits of a consolidated subsidiary and the associated non-operating expenses in the Company's separate financial statements for the third quarter of the fiscal year 2015.
1. Provision for Capital Deficits of a Consolidated Subsidiary and its Background
A European subsidiary Fujitsu Technology Solutions (Holding) B.V. (including its consolidated subsidiaries, hereinafter referred to as "FTS") is in a challenging position for its business performance because of the prolonged weaknesses of the European economy and intensifying competition of product business as well as an increase in procurement costs as a result of the weakening euro. In light of these circumstances, FTS initiated the process for closure of one of its development facilities and other measures in Europe in accordance with local law and, accordingly, recorded expenses for transforming its business model in the third quarter of the fiscal year 2015. As a result, FTS is projecting operating losses for the fiscal year 2015.
The Company decided to provide, in consideration of FTS financial conditions and other factors, for capital deficits of FTS until the deficits are resolved and, accordingly, recorded the associated expenses at the amount of 39.9 billion yen in its separate financial statements in the third quarter of fiscal year 2015.
2. Future Impacts to Financial Results
The Company will announce the amount of a provision for capital deficits of FTS recognized for the fiscal year 2015, as soon as they are finalized. This recognition does not impact the Company's consolidated financial results.
3. Dividends Forecast
There is no change in the forecast for the year-end dividend of 4 yen per share.
About Fujitsu
Fujitsu is the leading Japanese information and communication technology (ICT) company, offering a full range of technology products, solutions, and services. Approximately 159,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.8 trillion yen (US\\$40 billion) for the fiscal year ended March 31, 2015. For more information, please see http://www.fujitsu.com.
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