Casio 2008 Annual Report Download - page 21

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In the category of MNS (Mobile Network Solutions), sales declined by 3.2% to ¥165,800 million. In cell phones,
both the Exilim series W53CA model and W53H model (which features a 2.8-inch-wide QVGA organic electrolumi-
nescent display) proved popular, and strong sales growth was posted in the latter half of the year.
In the Electronic Components and Others segment, sales posted year-on-year growth of 3.0% to ¥96,398
million, accounting for 15.5% of net sales. The Electronic Components category enjoyed a sales increase of 8.9%, to
¥68,368 million. This was due to a recovery in demand for TFT LCDs, which put a stop to the slide in unit prices, in
addition to a rise in the ratio of LCDs used in cell phone and GPS applications.
Subsidiary Casio Micronics Co., Ltd. in March 2008 signed an agreement with Hitachi Cable, Ltd. to transfer
its Film Device business, which will enable us to carry out a radical restructuring of the subsidiary. In the Others
category, sales of ¥28,030 million were registered, for a decline of 8.9% from the previous year.
Results by Region
Sales in Japan recorded a year-on-year decline of 5.1%, to ¥327,999 million, accounting for 52.6% of total sales.
Sales in North America were down 3.8% at ¥80,790 million for 13.0% of total sales, while sales in Europe rose
3.8% to ¥94,333 million for 15.2% of the total. Sales in Asia (excluding Japan) and other regions category posted
an increase of 19.8%, to ¥119,928 million, accounting for 19.2% of total sales. Overseas sales as a whole rose
7.3% to ¥295,051 million.
Results of Operations
The Electronics segment posted a 13.6% decline in operating income, to ¥46,537 million, while the Electronic
Components and Others segment registered an operating loss of ¥3,259 million. Total operating income on a
consolidated basis, after adjustments for elimination or unallocated amount, was down 21.5% from the previous
year’s figure, at ¥37,753 million. These results represent a recovery from a significantly worse performance in the
first half of the term, thanks to improvements made in our product lineup with the launching of new value-added
items, including radio-controlled watches, electronic dictionaries, and cell phones, as well as improved efficiency in
product development and operational methods, and steps taken to increase productivity. The operating margin for
the reporting term was 6.1%.
The financial account balance for the reporting term rose from ¥1,106 million for the previous term to ¥1,502
million. Net other expenses increased from ¥7,797 million to ¥15,367 million. The principal factor in this change was
the posting of extraordinary losses resulting from the transference of the Film Device business of Casio Micronics to
Hitachi Cable.
Net income for the term came to ¥12,188 million, with EPS at ¥44.17.
19
Annual Report 2008