Fujitsu Siemens Computers: Challenging market –
Successful integration
- 3.1 billion Euro revenue
- Profit affected by Average Selling Price pressure and
restructuring
Munich, October 16, 2006 —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 Sales region Europe, Middle East and Africa,
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.
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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 further information about Fujitsu Siemens Computers,
please visit:
www.fujitsu-siemens.com
PR Contacts:
Ralf Lanzrath
Senior Director Communications
Tel.: +49 (0) 89- 3222-4430
Mobile: +49 (0) 170- 76 32 093
Fax: +49 (0) 89- 3222-4415
ralf.lanzrath@fujitsu-siemens.com
Sabine Twest
Senior PR Manager
Tel.: +49 (0) 89 3222 4457
Mobile: +49 (0) 175 18 62 082
Fax: +49 (0) 89 3222 4466
sabine.twest@fujitsu-siemens.com
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