Dow Jones Newswires: Fujitsu shares tumble after its Q1 operating profit slips 24%

Fujitsu Ltd.’s

shares fell sharply Monday morning after the company reported its operating profit for the fiscal first quarter slipped around 24%.

The shares fell as much as 9.8% to 16,705.00 yen ($125.25), matching the June 24 intraday low, according to FactSet. The shares were last down 7.8% at Y17,075.00.

The Japanese electronics and information-technology services company said Friday after the market closed that its operating profit for the April-to-June quarter of its fiscal year ending next March dropped to Y25.60 billion from Y33.74 billion a year earlier, mostly owing to effects from scarcity of material supply.

The fiscal first-quarter operating profit represents just 6% progress toward Fujitsu’s unchanged operating target of Y400 billion for the full fiscal year, which has probably increased the risk of undershooting the target, said Citi Research analysts in a research report. The company’s operating profit took a Y12.9 billion hit from component shortages, the analysts added.

Fujtisu’s net profit in the fiscal first quarter fell 28.5% from a year earlier to Y17.28 billion, although its revenue rose 2.1% on year to Y818.86 billion.

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