Consolidated Financial Results (1st Half Fiscal 2006 Earnings)

Billions of yen
  1H FY2006 1H FY2005 Change
Amount %
Revenue Domestic 49.6% 646.2 50.9% 637.5 +8.7 +1.4
Overseas 50.4% 657.3 49.1% 615.4 +41.9 +6.8
Total 100.0% 1,303.5 100.0% 1,252.9 +50.6 +4.0
Operating Income* 4.6% 60.0 8.1% 101.3 (41.3) (40.8)
Income before Income Taxes* 4.9% 63.5 8.5% 105.9 (42.4) (40.0)
Net Income* 2.5% 33.1 4.2% 52.7 (19.6) (37.2)
Exchange Rate: US$ ¥109 ¥110 (¥1)
Euro ¥136 ¥133 +¥3
  • * Operating income, income before income taxes and net income for 1H of FY2005 include a one-time gain on transfer of the substitutional potion of Fuji Xerox's employee pension fund liabilities.

Revenue

Regarding consolidated net sales during the period under review (April 1, 2005, through September 30, 2005), although sales of color film and digital minilabs declined, the continued abundance of demand for flat panel display materials supported a large increase in Fujifilm's sales of such materials. In addition, sales of digital color multifunction devices and office printers were strong, particularly overseas. Such positive factors – together with contributions from companies newly included within the scope of consolidation and the positive effect of the progressive depreciation of the yen vis a vis euro – boosted consolidated net sales to ¥1303.5 billion, a rise of 4.0% from the same period in the previous fiscal year.

Income

A factor greatly affecting the year-on-year comparison of profitability was Fuji Xerox's recording of temporary gains on the return of the substitutional portion of its employee pension fund liabilities in the previous year. In addition, regarding the cost of sales and operating expenses, the Company strove to reduce costs through such measures as those to improve manufacturing efficiency, reduce procurement costs, and more-tightly focus spending on strategically emphasized tasks. However, cost increases due to rises in main raw material prices, greater R&D spending with the objective of creating new products and businesses, and expenses accompanying proactive measures to reorganize manufacturing systems for imaging solutions operations centered on photosensitive materials operations and digital imaging operations and to implement other restructuring projects caused operating income to drop 40.8%, to ¥60.0 billion. Income before income taxes decreased 40.0%, to ¥63.5 billion, and net income declined 37.2%, to ¥33.1billion.

Consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

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