Fujitsu Ltd, the third-largest maker of mobile-phone memory chips, said it posted a loss in the first quarter amid the semiconductor industry's worst year-on-year revenue decline ever and lower chip prices.
Fujitsu said it had a group loss of ?55.4 billion (US$448 million) in the three months ended June 30, widening a ?13.3 billion loss in the year-ago period. The company said it will post a full-year loss of ?220 billion compared with its ?50 billion profit forecast made in April.
Tokyo-based Fujitsu said it can't predict when demand for personal computers and mobile phones will recover. The company said prices for 16-megabit flash memory chips will probably decline throughout the year, adding sales of optical transmission equipment in North America will slide.
"This quarter's earnings for Japanese electronics makers are worse than anybody's expectations," said Toshiya Tsuchikawa, an analyst with Shinko Securities Co. "A recovery won't happen this year."
The company said it will cut thousands of jobs in the current fiscal year through March and will book a ?300 billion charge related to the restructuring.
Further measures will be announced in a month, it said.
Fujitsu's first-quarter sales rose 1.7 percent to ?1.09 trillion. The company cut its spending plans by ?60 billion to ?420 billion. The company, which expects a loss of ?210 billion in the first half, also reduced its chip production forecast by 31 percent to ?475 billion.
Chip sales are expected to decline 21 percent this year, down from a record of nearly US$200 billion last year, industry forecaster International Data Corp predicts, adding growth may not return to double figures until 2003 at the earliest.
The company also pared back a plan to boost flash memory production capacity that analysts had said was too aggressive given the current downturn.
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