Fujitsu Ld Liquidation of Consolidated Subsidiary in the U.S. (1487U)

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RNS Number : 1487U

Fujitsu Ld

28 November 2013

Fujitsu Limited

November 28, 2013

Notice Regarding Liquidation of Consolidated Subsidiary in the U.S.

Tokyo, November 28, 2013 - Fujitsu Limited announced that at a Board of Directors meeting held today it decided to liquidate a consolidated subsidiary in the U.S., Fujitsu Management Services of America, Inc., as indicated below.

1. Overview

Fujitsu Management Services of America, Inc. (FMSA), a consolidated subsidiary based in the U.S., is a holding company under which such operating businesses as the manufacture and sales of PBX phone systems and the sales of computer peripherals were wound down after 1990, and the hard disk drive business was sold in 2009. This left the scanner sales business as the sole remaining hardware business.

In the meantime, the Fujitsu Group's services business in North America was consolidated under, and enhanced in the form of, Fujitsu America, Inc. (FAI).

Today it was decided that the scanner sales business under FMSA will be transferred to PFU Limited, a consolidated subsidiary based in Japan, in order to create a more agile management structure for the scanner business. In addition, currently FMSA provides administrative support and treasury functions to FAI and other Fujitsu Group companies in North America, but it has been decided to split off these functions and liquidate FMSA. It is anticipated that the liquidation will be completed in March 2015.

2. Impact on fiscal 2013

For fiscal 2013, Fujitsu projects an adverse impact on consolidated net income of approximately 10 billion yen. Contributing factors include foreign currency translation adjustments associated with investments not reflected in the consolidated net income of prior fiscal years, representing a liquidation loss and recorded as other expenses, as well as a reduction in tax expenses. However, as foreign currency translation adjustments are already included in calculations of owners' equity, there will be no deterioration in consolidated owners' equity. This adverse impact on net income was already factored into the projections for net income for the fiscal 2013 earnings projections announced on October 31, 2013.

On a non-consolidated basis for fiscal 2013, Fujitsu expects to post net income of approximately 30 billion yen. In addition to the recognition of a gain on liquidation, this is the result of an anticipated reduction in tax expenses owing to the recognition of a tax loss on account of valuation losses on investments in the affiliate in the non-consolidated financial results of prior fiscal years.

3. Company Outline

   (1) Name:                                 Fujitsu Management Services of America, Inc. 
   (2) Location:                             1250 East Arques Avenue, Sunnyvale, CA94085-3740, USA 
   (3) Representative:                    Hiroshi Haruki, President and CEO 

(4) Business: Provision of administrative support and treasury services to Fujitsu's subsidiaries in North America

   (5) Capital:                               US$487,486 thousand 
   (6) Established:                         July 1968 
   (7) Ownership:                          Wholly owned by Fujitsu Limited 
   (8) Number of employees:        Approximately 100 

Press Contact

Fujitsu Limited

Public and Investor Relations Division

Inquiries: https://www-s.fujitsu.com/global/news/contacts/inquiries/index.html

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Approximately 170,000 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 4.4 trillion yen (US$47 billion) for the fiscal year ended March 31, 2013. For more information, please see http://www.fujitsu.com.

All company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.

This information is provided by RNS

The company news service from the London Stock Exchange

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