Fujifilmâ€™s operating profits for the first half of 2006 dipped 15.4% and they are happy about it. Fiscal pundits were apparently expecting much worse, and the smaller profit decline is considered a sign that Fuji’s aggressive overhaul of its photographic unit is working.
Fujifilm was a photographic film industry leader but the conversion into digital is exacting a steep price for Fuji. The restructuring, which includes abolishing 5,000 jobs, will cost them 79 billion yen ($675 million) this year.
“The restructuring efforts are proceeding as planned and we aim to get all of it done this year,” notes Toshio Takahashi, CFO of Fujifilm.
Without the restructuring costs, the photographic segment’s operating profit actually increased to 11.3 billion yen, up from 2.5 billion yen last year.