Fujitsu raises its profit forecast

Strong results for disk drive and phone sales push Fujitsu's profits higher

Strong results from Fujitsu's hard-disk drive and mobile phone divisions should push the company's profits for the year just ended higher than expected, it said Tuesday.

Fujitsu had expected to report a profit of ¥50 billion ($423 million) for the fiscal year ended March 2006, but it now expects a profit of ¥68 billion, it said. Net sales are expected to be ¥4.79 trillion, slightly lower than its previous forecast of ¥4.8 trillion. Both figures are higher than the results it reported for fiscal 2004.

Fujitsu has been investing in the storage sector to strengthen its position there. It just started a three-year effort to become one of the top three hard-disk drive makers by 2008. To do so, the company wants to grow its drive business at about three times the pace of the market.

As part of the effort Fujitsu is looking to expand its offerings, currently focused on enterprise and computer drives, to include 1.8-inch drives for use in consumer electronics products.

In the area of mobile phones, the company is enjoying strong demand in Japan as consumer adoption of 3G handsets continues.

The Tokyo company is due to report full-year earnings next week.