Fujitsu plunges into the red as PC sales fall

Fujitsu on Thursday warned that it plunged into the red in April-June on sluggish sales of personal computers and network equipment, but said it would still meet its full-year profit target.

The sprawling IT conglomerate fell into a 27.3 billion yen ($220 million) operating loss for its fiscal first quarter, reversing a year-earlier profit of 7.29 billion yen. Sales edged down slightly to 1.065 trillion yen, it said.

The weak results hit Fujitsu shares, which fell 3.18 percent in afternoon Tokyo trading.

Fujitsu also cited higher expenses for the weak results.

"In addition to the impact of lower revenues from network products and PCs, there was the negative impact of higher procurement costs in Europe," it said.

"And there were one-time expenses recorded to cover the costs of reallocating employees and others in the network business in Japan."

The company left its annual forecast unchanged, expecting a 100 billion yen net profit on sales of 4.85 trillion yen.