Fujitsu Siemens sets massive growth target

They must be really high

By Joe Fay in Hannover • Get more from this author

Posted in Financial News, 9th March 2006 13:16 GMT

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CeBIT Fujitsu Siemens stuck its neck out today when it set itself the target of hitting €10bn turnover by 2008.

CEO Bernd Bischof set the ambitious goal as he unveiled preliminary results for the fiscal year ending March 2006. The company expects turnover to come in at €6.7bn, with pre tax profit of €120m. The fastest growth rates were Middle East and Africa, at 51 per cent, and Eastern Europe at 48 per cent.

The biggest growth by product category was in consumer mobiles, at 29 per cent, and business mobiles at 23 per cent. While Bischoff was wary about setting targets for this year, he said the company planned to hit €10bn in 2008, with profits of €250m. “I think €10bn sounds good.”

Well, that’s as good a business strategy as any.

More specifically, the company has set itself the target of growing at five percentage points ahead of the market average.

Ambitious, but its revenues have been given a boost at the addition of the product-related services (PRS) business it took over from Siemens a few months ago.

But while the services business will give a boost to revenues straight away, a bottom line effect may take a little longer. Bischoff said he hoped to get the services unit into the black within a year. He was coy whether this will be achieved, in part, through layoffs, saying, “we still need some restructuring".

Bischoff also sought to play down charges that the PRS acquisition would lead to channel conflict, insisting that it would, if anything, deepen its integration with its partners. ®

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