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Being a player in the IT industry would seem to be a challenge
in these difficult times. How did the downturn in your industry
affect Fujitsu Siemens Computers in fiscal 2002/2003?
Dr. Adrian v. Hammerstein: Last year
proved to be even more difficult than many experts and analysts
predicted twelve months ago. The economy failed to recover and
our industry was directly affected because customers deferred
their investments. This had a considerable impact on revenue
trends in the IT industry: minus 13% for total hardware in Western
Europe in calendar year 2002. This in turn resulted in heavy
margin pressure. Some of our key markets, such as Germany, were
even more seriously affected. At Fujitsu Siemens Computers,
we drew our conclusions from these developments early on: in
the current economic climate, customers are focusing on investments
that lead to measurable returns over a short time period.
And how did Fujitsu Siemens Computers perform in this unfavorable
environment?
Dr. Adrian v. Hammerstein: We performed
better than most of our competitors and have clearly outperformed
the market. Our revenues for fiscal 2002/2003, at € 5.34
billion, were only 1.8% down year-on-year. Operating profit
before restructuring costs, at € 70 million, reflects an
even more positive trend: an improvement of € 30 million.
Taking restructuring costs of € 55 million into account,
we have earned a profit before tax of € 8 million. Our
cash balance improved by € 372 million. To sum up, Fujitsu
Siemens Computers has succeeded in gaining market share while
continuing to make solid operational progress.
How did you manage to achieve a 75% improvement in operating
profit?
Dr. Adrian v. Hammerstein: Focusing
on Mobility and Business Critical Computing proved to be the
right strategy for the company. In an economic situation marked
by downturn, our customers expect us to reduce complexity and
create value for them, and that’s what we were able to
deliver.
Strict cost management was another key factor. In fiscal 2002/2003,
we focused on improving our cost structure by launching optimization
projects across the company. All in all, we cut operating expenses
by 13% and reduced our headcount by nearly 400. These measures
were difficult, but are indispensable in ensuring the long-term
future of the company. And that is my goal: to establish Fujitsu
Siemens Computers as a sound, successful heavyweight on the
global IT market.
Let’s talk about the targets you set for the individual
segments. Did you succeed in keeping your market leadership
in the consumer business?
Dr. Adrian v. Hammerstein: Yes, with
revenues of € 1.26 billion, we did indeed maintain our
number 1 position in the Western European market. Our strategic
focus on Mobility contributed greatly: our consumer mobile revenues
growth was more than double the market growth.
Our future goal is to continue to improve our profitability
in this segment and to provide products that are simple to buy,
simple to own and simple to use, all at fair prices.
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Dr. Adrian v. Hammerstein
President & CEO |
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