Profit at World’s No. 2 Computer Maker Drops 34%

Fujitsu Ltd., Japan’s biggest computer maker, Thursday reported a 34% drop in profit in the first half of its fiscal year.

The weak results surprised financial analysts who follow the company, the No. 2 computer manufacturer in the world after International Business Machines Corp.

Fujitsu reported that group profit dropped to $204.6 million in the six months ended Sept. 30.

“We expected a drop in profits, but not so much,” said an industry analyst at a Japanese brokerage.

Fujitsu said the lower profit was due in part to development spending, including establishing overseas production, and strengthening its sales structure.

Higher interest rates and special losses, including a drop in the value of its shares in telecommunications giant Nippon Telegraph and Telephone Corp., also ate into profits, a company spokesman said.

The gloom could spread into the full year ending March 31, 1991.

The company spokesman said a stronger yen and continued pressure from high interest rates are expected to dampen profits, as is a $47.2-million good-will payment in connection with its acquisition of British computer giant ICL earlier this year.

As a result, Fujitsu has lowered group profit forecast for the full business year to $708 million from a May forecast of $866 million.

That compares to a profit of $677 million in 1989-90.