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Fujitsu's quarterly profit falls 21 pct

Fujitsu's quarterly profit falls 21 pct

Fujitsu's profit dropped 21 percent in the most recent quarter as sluggish sales of personal computers and other gadgets offset growth in technology services, the electronics company said Wednesday.
The Tokyo-based company lowered its profit projection for the fiscal year, blaming an expected fall in consumer electronics purchases as the global economy slows.
Like other Japanese exporters, Fujitsu's earnings are also being hurt by the rising yen.
Fujitsu posted a 4.29 billion yen ($44.2 million) net profit for the July-September period, down 21.2 percent from 5.44 billion yen the same period the previous year. Quarterly sales fell 5.2 percent to 1.277 trillion yen ($13.16 billion).
Fujitsu said its technology services and servers businesses were robust, especially in Japan, but its overseas operations were hurt by the strengthening yen, which recently hit a 13-year high against the dollar.
President Kuniaki Nozoe said the company is operating in a "very challenging business environment."
"We are now facing a global economic slowdown, and the entire Fujitsu Group remains committed to driving innovation in our own business as well as the businesses of our customers to improve performance," he said.
Fujitsu's hard disk drive and other device businesses faltered because of price drops in the quarter ended Sept. 30.
The device business is likely to continue to suffer because of U.S. economic woes that will dent consumer spending on personal computers, mobile phones and other gadgets in coming months, according to Fujitsu.
Fujitsu expects 60 billion yen ($618 million) profit for the fiscal year ending March 2009, up 25 percent from the previous year. It had earlier expected a 100 billion yen ($1 billion) profit for the fiscal year.
Fujitsu shares fell 7.7 percent to 370 yen ($3.8) in Tokyo. Fujitsu's earnings were announced after trading ended in Tokyo.