Omron 2001 Annual Report Download - page 25

Omron Corporation 23
Sales by Region
(%)
2001 7.6
10.3
10.8
71.3
5.5
11.3
8.8
74.4
5.9
12.1
10.0
72.0
5.8
13.9
10.5
69.8
6.7
11.0
10.7
71.6
1997
1998
1999
2000
Japan
North America
Europe
Asia and Other
intercompany transactions, decreased 7.8 percent year-
on-year to ¥39.3 billion, and accounted for 6.6 percent
of total net sales. Domestic consumption remained
weak, with the resulting drop in demand igniting
downward pressure on product prices. Overseas, the
economic slowdown in North America affected sales,
while performance in Europe was stable. Sales in Asia
were off as demand in several key countries slackened.
Others
Net sales of other divisions decreased 6.0 percent to
¥55.9 billion, and represented 9.4 percent of total net
sales. Strong demand for the Creative Service
Company’s outsourcing services, which reduce indirect
costs for clients, led to an increase in sales.
Falling prices and intensifying competition impacted
the PC-related equipment business, and sales of
information terminals to convenience stores, which had
been a growth business, were down. Success in meeting
customer needs resulted in strong sales growth in the
copier and printer business.
Increase (Decrease) in Sales of
Internal Business Companies
2001 2000 1999
Industrial Automation ............. 11.2% (0.9)% N/A
Electronic Components........... 7.5 20.6 N/A
Social Systems Business ........ 10.4 (5.4) N/A
Healthcare ................................ (7.8) (2.5) N/A
Others ....................................... (6.0) (1.3) N/A
Notes: 1. Due to a reorganization in April 1999, figures for increase or decrease in
sales corresponding to current internal companies are not available for 1999.
2. The increase or decrease in sales for 2000 is based on the amounts
previously reported for 2000, prior to the reclassifications made in the
current year.
Review of Operations by Region
Japan
Although consumer spending remained restrained,
exports and increased capital spending, particularly IT-
related investment, helped the economy enter a modest
recovery phase. The Industrial Automation Company,
the Electronic Components Company and the Social
Systems Business Company each generated sales
growth, while reduced demand and lower prices
negatively impacted Healthcare Company sales. Total
sales to external customers increased 6.7 percent to
¥423.8 billion.
North America
High growth in personal consumption and capital
investment focused on IT throughout the first half of the
fiscal year cooled rapidly following downward revision
of results for IT-related companies in the second half.
Despite the impact of the second-half slowdown, the
Industrial Automation Company, the Electronic
Components Company and the Healthcare Company all
posted solid performance. Overall, sales to external
customers increased 8.2 percent to ¥64.4 billion.
Europe
During the second half of the fiscal year, rising oil
prices and the appreciation of the euro dampened
business conditions in Europe. The Industrial
Automation Company generated sales growth on a local
currency basis, as did the Healthcare Company despite