Omron 2001 Annual Report Download - page 14

Electronic Components Company
Despite signs of weakening demand in
some sectors of the industry during the
latter half of the period, the business
environment in the fiscal year ended
March 31, 2001 was generally favorable,
and the Electronic Components Company
successfully introduced sales initiatives in
response to market demands. As a result,
net sales were ¥117.9 billion, an increase
of 7.5 percent over the previous fiscal
year.
Domestic sales were buoyed by a solid
market for IT-related electronic
components, particularly for cellular
phones and the Internet. In
manufacturing, we implemented a new
strategy for flexibly increasing production
of strong-selling equipment. This resulted
in firm sales of equipment for consumer
and commerce (C&C) components such
as relay switches.
Outside Japan, the U.S. economy
continued to grow steadily through the
first half of the fiscal year. We
restructured our sales network in the U.S.
and Europe, and efforts to strengthen
sales capabilities began to show results,
marked by the start of operations of an
independent subsidiary in Southeast
Asia. Sales of equipment for C&C
components were particularly brisk,
fueled by demand for personal
computers and audiovisual equipment.
Moreover, expanded worldwide
investment in communications
infrastructure continued to underpin
growth in demand for telecom relays
used in telephone exchanges.
In the automotive electronic component
sector, increased automobile production
volume in Japan resulted in growing
sales of high-value-added products such
as keyless entry systems and electric
power steering controllers. Business also
expanded strongly in North America,
propelled by the launch of new products
amid favorable market conditions. In
Europe, however, declining automobile
production volume in the United
Kingdom resulted in a downturn in
component sales.
In order to maintain its position as a
leading global electronic components
supplier, the company is focused on
improving its worldwide sales network,
promoting low-cost operations, and
standardizing parts and materials. In
addition, the selection of optimal locations
for production and procurement is aimed
at building a competitive advantage on a
global basis.
The type XF2L FPC
connector is used for
mobile devices such as
PDAs and mobile
telephones.
Used primarily in
production equipment, the
MY miniature power relay
is made without lead,
cadmium or PVC
materials to reduce
environmental impact.
The G6K relay, featuring
4th generation design,
offers excellent savings in
board size space.
12 Omron Corporation
0
50
100
150
2000 2001
Net Sales
(Billions of Yen)
Keyless entry systems offer
convenient remote locking
and unlocking of vehicle
doors and trunks.
The type XC8 hard metric
connector is used in
communications
infrastructure, including
telephone exchanges,
servers and transmission
devices.