Fujifilm Holdings Corporation (FUJIY) reported improved financial results for the fourth quarter and fiscal year 2011. During the fourth quarter, the company reported an income of ¥5.4 billion (US$6.6 million) compared with a net loss of ¥31.5 billion (US$34.7 million).
For the fiscal year 2011, the company’s net income was ¥63.9 billion (US$77.7 million) compared with a net loss of ¥38.4 billion (US$42.3 million) in the year-ago comparable quarter. Earnings per share in the year were ¥120.73 (US$1.47 per ADR) compared with a net loss per share of ¥78.67 (US$0.85 per ADR).
Revenue
Revenue in the fourth quarter plummeted 3.3% to ¥565.4 billion (US$6.9 billion) due to depressed results from the company’s three operating segments. In the quarter, Imaging Solutions revenue fell 13.0% year over year, revenue from Information Solutions were down 1.3% and Document Solutions revenue decreased 2.0%.
In the fiscal year, revenue increased 1.6% year over year to reach ¥2,217.1 billion (US$25.9 billion). The growth can be attributed to rapid recovery in overall economy and surge in demand in the emerging markets.
Of the total revenue, domestic revenue accounted for 46.7% while international revenue was 53.3% of total revenue.
Revenues from the Imaging Solutions segment reached ¥325.8 billion (US$3.8 billion), down 5.7% year over year due to the negative impact of the appreciation of the yen. Revenue from the Information Solutions segment increased 1.8% to ¥917.4 billion (US$10.7 billion).
Revenues from the Document Solutions grew 4.1% year over year and reached ¥973.9 billion (US$11.4 billion) due to the increase in demand for products in the emerging markets and exports to Xerox Corporation (XRX).
As a percentage of revenue, cost of sales in the fourth quarter increased 50 basis points, leading to lower gross margins, which stood at 39.0% versus 39.5% in the year-ago quarter. SGA and R&D expenses together accounted for 33% of total revenue. Operating margin fell 50 basis points year over year to settle at 6.0%.
During the fiscal year 2011, Fujifilm recorded an operating income of ¥168.1 billion (US$1.96 billion) before restructuring and other charges, up 65.4% year over year. The growth was attributed to increased revenues and decreased costs. Restructuring charges were ¥31.7 billion (US$37.0 million).
Balance Sheet
Exiting the fiscal year 2011, the company’s total assets decreased 4.2% year over year to ¥2,708.8 billion (US$32.7 billion). Cash and cash equivalents also registered a 22.9% fall as a result of redemption at maturity of the bonds.
Long-term debt of the company stood at ¥119.3 billion (US$1.4 billion), down 14.9% year over year.
Cash flow from operating activities in the fiscal year 2011 decreased 36.7% year over year to ¥199.4 billion (US$2.3 billion) while capital expenditure increased 25.1% to ¥96.1 billion (US$1.1 billion).
Fujifilm is a leading global producer of photographic imaging products. The company develops, manufactures, and markets traditional and digital imaging products.
FUJI PHOTO FILM (FUJIY): Free Stock Analysis Report
XEROX CORP (XRX): Free Stock Analysis Report
Zacks Investment Research
