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RoHS | October 24, 2006

Fujitsu Siemens blames RoHS<br>for weakened financial results

For the first half of 2006 Fujitsu Siemens Computers reached a turnover of 3.1 billion euros and posted a profit before taxes of 4 million euros compared to the same period 2005 when FSC reported 2.8 billion euros in turnover and a pre tax profit of 27 million euros.

“We managed to assert our market position in a tough market environment. We are always prepared for a tough market and fluctuations in demand. We will be ready if the market develops better than expected." Bernd Bischoff, president of FSC, said. The company blaims RoHS for the weaker results. "The real problem for FSC relates to its manufacturing processes and distribution policies. It may have allowed stock of non-compliant equipment to build up and then failed to clear this through the channel in time. The lesson for other manufacturers is clear. We are only just beginning to address environmental concerns associated with electronic equipment. Just-in-time and adaptable manufacturing will need to be backed up with lean distribution practices if this is not to be a frequent feature on future financial reports", Derek Morgan, head of strategy at IT equipment recycling and remarketing firm CKS Group, said.
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